Re: How i do ledger scrutiny(give the examples of rent share capital etc.)
Answer
# 1
Ledger scrutiny means to checkwhether the closing balanceis showing the natural closingbalance in trial balance.e.g. Dr. Bal for all the expensesand Cr. bal for allincomes. If it is not showing thenatural balance theperson scrutinising has to findout the reasons for thesame.One has to find the recurringbehaviour of ledger like rentfor Monthly debits
How i do ledger scrutiny(give the examples of rent share capital etc.)
Answer
In case of rent paid we have tosee that whether in rent A/c1.rent is paidregularly,consistency shd b there2. Amount of rent paid shd be inaccordance with rent agreement3. Security deposit with the landlord shd nt be charged inrent A/c4. If we r paying the property taxalso then we shd see thtit shd mention in rent deed.Share Capital1 We shd check is there any freshissued share capitalduring the year2. if issued then the company shdhv the authorised sharecapital upto issued new share.3. whther all d call money hasbeen received properly or notin issue of share capital.
4. and we shd also see if share rissued as bonus then theexpenses incurred on such issuecan be claimed in P& L a/cbut in other case expenses onissue of share cant be claimedin P & L a/c
Ledger scrutiny in tally1.Adhearance to accounting standards2.Proper grouping of ledgers3.Adhearance to accounting principles4.Adhearance to ICAI guidelines5.Adhearance to the principles of double entry system6.Trend analysis in regular expenditure7.Statutory compliances8.Proper narration in entries9.Long outstandings10.Linkage between the grouping and the nature oftransaction entered into with various parties11.Booking of expenditure12.Proper realisation of income13.Linkage between accounting treatment and narration14.Proper accounting treatment15.Seperate accounting treatment of income andexpenditure16.Entry in proper voucher type