Rectification of error after preparation of final accounts


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Hi Friends.
I need bit of your help .
Here is my case .

Balance sheet from Auditor and of Company for the year ended 2010 has difference of amount 71,700. . Audited B.S total is less by Amount AED 71,700.

I have located the confusion.


“Auditor has adjusted the Accounts Receivable Account with Liabilities account i.e he has decreased A/R by 71, 00 and also decreased one Liability Account with the same.

I think it is not mistake . but it is affecting the total of B.S. M i right what I am thinking?


(I explain further)


Both Accounts were related to single party. Company has taken advance for some projects and also there are some running projects company has account receivable from” so auditor has shown the net in the final account.


Kindly tell me do I have to pass an entry? r I can leave the way it is . ? because audit for 2011 is about to start .


What i was thinking


I may pass one entry while crediting all of three A/R which totals the amount of ,71,700 and Debiting Advance received from the party . This will balance the total for the year 2010.


But problem is , if I do that how will be able to trace the project individually in 2011 as the amount of 71,700 belongs to different projects.


I thought of a solution " I may pass one entry in 2010 and the same I will reverse in 2011"

Can I ?


Kindly help me out . :(
:confused:
 
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an item of purchase of rs 162 was recorded in the purchase day book as rs 62 and posted to the debit of the supplier account as rs 26 (solution)
 
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an item of purchase of rs 162 was recorded in the purchase day book as rs 62 and posted to the debit of the supplier account as rs 26 (solution)
Hi,,, here is your solution
P/l adjustment AC. Dr. 100
Suspense. AC. DR. 88
TO supplier. 188(26,162)
 
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