Ledger scrutiny

Basically you need to check whether there, according to you,  are any abnormal entries

Eg In cash ledger check negative cash balances,etc

      In expenses ledger see whether there are credit entries, if yes , reasons for the same

There is no particular exhaustive list for it.

check sanyam auroras profile n u will get te solution in better way.

In Ledger Scrutiny, you check whether the Accounts show correct Debit / Credit balances, you also check for any unusual / abnormal entries. If such entries are found then the same are reported and solved.

For Eg : Debtors should show Debit balance, while Loans taken from other Parties should show Credit Balance.

Happy New Year in Advance!! 

Regards,

Devendra Kulkarni

it is thorough checking of ledger a/c of party with our ledger account in order to get confirm for each and every transactions to be reflected in books of accounts of both the parties.

There is no particular process wat u hav to do is to check the transactions as per ur knowledge.....

hi friends,

There is no procedures ......

But i want to share ... how I will do  ledger scrutiny (for both internal audit and statutory audit)

Simple steps are-

1) Take TB  as on 31 mar (as on reporting date) with details of OB+current year transaction (both debit and credit) and closing balance.

2) Check individual items in TB- In case of

a) Share capital- check whether any change- ROC compliance, company compliance etc

b) taxes- TDS- take ledger of TDS- partywise with columner so you can trace total contract exp for the period and total exp. charge TDS at 2% or 1% as the case may be. then check total TDS amount deducted in columer.

c) Debtors- check old balance pending- check is there any provision for doubtful is required.

                     Check credit balances

                     check high value trasactions. ask the details for the same

                     Ask for debtors confirmation for major customer/client having high values

d) Creditor - Same as debtor- just opposite

e) Investment- Ask for FD receipts

                           Check approval for investment in Subsidary co. Board resolutions, AGM

                           Ask for confirmation

f) Expenses- Check whether Is there any exp. booked as exp. instead of Capital expenditure

                        Check proper grouping of expesnse.

                        Do movement anlysis (compare with Previous year) in value and in %. ask for variations

Regards

Sachin

There is set rules for ledger secrutiny . Auditor is require to use his knowledge and rational behavior to check the accounts . however Auditor is primilary require to check whether books of accounts are according to law and follow all applicable rules and regulation and gudilines. and accounts refelected true and fare view.

Ledger scrutiny means to check whether the closing balance 
is showing the natural closing balance in trial balance. 
e.g. Dr. Bal for all the expenses and Cr. bal for all 
incomes. If it is not showing the natural balance the 
person scrutinising has to find out the reasons for the 
same. 

Ledger scrutiny means verifying the correctness of each account head in the ledger. Then only  misclassification,omissions if any can be found out and rectified,

IT DIFFERS FOR EACH TYPE OF THE LEDGER ACCOUNT,THAT IS EXPENSES A\C RENT PAID WHILE SCRUTINISING THIS A\C SEE HOW MANY ENTRIES THEREIN THE YEAR?TWELE OR MORE,OR LESS. LIKE WISE ALL MONTHLY EXPENSES SHOULD HAVE 12 ENTRIES .IF EXCESS OR LESS SEE THE REASONS FOR THE SAME .INTEREST DEDITED ON C\C A\C MONTHLY ,ELECTRICITY ,WAGES ,TELEPHON ,ETC.IN THE CASE OF DEBTORS ,SEE BAL. DUE WITH O\S BILLS FROM END OF THE YEAR LIKE WISE U CHECK ALL LEDGER A\CS BY CA S R MANIYAR JALGAON

Dear neha, for  ledger scrutiny there are no process define well  we do scrutiny  for verification of the entries appearing in ledger are according to accepted norms/ business practices and we carefully examine that whether transactions are according to law and complied all legal compliances.