MANISH AGGARWAL (student) (24 Points)
06 July 2008Hi!
I m having a problem in office. We have audit of a firm who prepares ledger manually, their trial balance is not tallying. we have totalled all the pages and also checked the posting from cash book. but unfortunatly we haven't find the error yet.
I want to know is their any other method for finding out the error??
Can use of self balancing ledger be of any use?? if yes, how should i proceed???
CA Annie
(Chartered Accountant )
(747 Points)
Replied 06 July 2008
there must be a posting error, u just have to check if all entries in cash book has been carried to the respective ledgers
ritika
(student)
(84 Points)
Replied 06 July 2008
hi... There can be defect of omission... or double entry... Or there is the possibility that this mistake may be carried from last year... or due to any contingencies last year... It is also possible that there is numerical mistake.. for eg. if he is posting 9 rs. in one A/c and Rs. 6 in other A/c..
But plz tel me ur mistake after u solve this problem
yashes gala
(Service)
(177 Points)
Replied 07 July 2008
hi
check the difference between the two sides. Double the difference and halve the difference. If there is such amount in the TB, trace that and find out whether it is correctly put in TB. Check the previous BS and find out whether there is any amount of last year not put in CY TB. Best of Luck!!!
Vipan Jain
(Service)
(0 Points)
Replied 07 July 2008
You can divide the whole checking process in three parts. Check the opeining balances with the previous year tallied trial Balance. Check the current postings and the third is check the balances carried over to the trial. But before u start try the method suggested by yashes Gala. Best of luck and let me know the reason of difference
Vipan Jain
(Service)
(0 Points)
Replied 07 July 2008
You can divide the whole checking process in three parts. Check the opeining balances with the previous year tallied Balance sheet. Check the current postings and the third is check the balances carried over to the trial. But before u start try the method suggested by yashes Gala. Best of luck and let me know the reasons of differences.
vinodk.Nesar
(AUDIT)
(100 Points)
Replied 07 July 2008
look for opening balances have been carried out in current year, then look the entries have been posted in the books... then car our\t
Jayachandra Naidu
(Accountant)
(171 Points)
Replied 08 July 2008
Hi,
first you can check it all opening balances (Previous year closing balances), with cash and bank balances.
then you check it Journal entries(advance amounts weather transferred correctly or not to expenses).
CAclubindia
