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Amounts Received Not Recorded Detected Later
04-14-2009, 07:55 PM
Post: #1
Amounts Received Not Recorded Detected Later
If any amount received from a client in previous accounting period but not recorded in that period but in any subsequent accounting period the fact come in the knowledge of accounts staff then what entry shall be passed in books of accounts.


Regards,

Awais Aftab.
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04-15-2009, 05:29 AM
Post: #2
 
In my opinion its an error. Should apply IAS-8 on it.

By the way, if cash was received, how was it reflected in bank reconciliation statement last year ?
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04-16-2009, 02:19 PM
Post: #3
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by itz_faraz</i>
<br />In my opinion its an error. Should apply IAS-8 on it.

By the way, if cash was received, how was it reflected in bank reconciliation statement last year ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

In fact no bank reconciliation statement was previously prepared in that concern.
Can you kindly provide the provisions of IAS-8 in this regard

Regards
Awais A
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04-17-2009, 05:57 PM
Post: #4
 
Dear Aftab
IAS 8, deals with Fundamental Error and changes in accounting policies.
first of all fix the nature of transaction.
is it Cash recieved from customer by cashier
is it Cash recieved in bank from customer
is it cash sales.
is it cash received by third party /owner etc.

I think you would be in a better position to dicide. Fix the liability and charge to him.

Awais have a look of qoute of Faraz - perpetual and comment. it is your field.
Wasim
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04-20-2009, 02:08 AM
Post: #5
 
Although the bank reconciliation was not prepared, but it was a reconciliation item, considering that the amount was deposited directly by the customer in bank account. So, the error was that the Bank Balance was erronously disclosed as receivable (Debtors). Simply Debit the bank and credit A/c receivable. It will not have any effect on Profit or loss.

Now in the financial statements simply reclassify the comparative figures of trade debts and Bank balances.
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04-22-2009, 03:17 AM
Post: #6
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by smraza</i>
<br />

Now in the financial statements simply reclassify the comparative figures of trade debts and Bank balances.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Should it be reclassification or restatement!
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04-29-2009, 05:29 PM
Post: #7
 
I agree with smraza
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05-14-2009, 04:36 PM
Post: #8
 
simply debit ur bank & credit concerned party account if direct cash deposited by party in bank.
otherwise debit cash.
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05-15-2009, 03:00 AM
Post: #9
 
Yep..

if you were expecting an amount from that customer, then there's going to be an A/R in your unadjusted statements..
So you need to pass following entry to reflect the following situation

1 DR Cash
CR A/R Customer A/c

2 DR Suspense Account
CR A/R Customer A/C
(If incoming cash was recorded in Cash head but not cancelled w/ A/R)

Similarly, if partial amount is received partial A/R receivable will be canceled while less cash amount is received against full A/R receivable settlement, difference will be charged to Income Statement..
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