Auditing Vouching of Ledger – Learn Auditing in simple and easy steps starting from Following steps are involved in the audit of impersonal ledger account −. this post explains about impersonal ledger and its auditing. The auditor’s duty is to inspect the relevant accounts in the ledger, demand notes, receipts, etc., and find out what period is covered.

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The confirmation from other sources is essential. Both these arguments appear to be sound. The total of sales journal is posted to the ledger. The reasons may be collected for failure of debtors to pay amount due.

Following works are to be performed for the audit of impersonal ledger: The company may have filed case in court of law against another company for infringement of copyrights or trademarks. The sellers can offer allowances for -promoting sales or avoiding sales returns. It so happens that accounts are closed on the last day of the last month of the year but the wages and salaries for that month are paid on the first day of the next month in the next year.

It may be necessary at some point usually month or year to ascertain the balance in an account.

He should check that proper provision has been made. For vouching the prepaid expenses, the auditor should scrutinize the relevant nominal accounts,the-demand notes. Such audit is conducted with the help of cash book, journal and subsidiary books. The auditor can check the total of general ledger. Such audiit is to be stated in footnotes.


The auditor can determine the amount of income relating to coming years. These expenses are of heavy amount and are incurred mainly for promotional reasons. Real Accounts are accounts relating to the assets and other properties like machinery and will always show debit balance.

All the nominal account, real account and capital account fall under impersonal ledger accounts. Whether TDS is deposited in time or not. He should check that amount carried forward is correct. The interest may become due at the end of the year. Through this book, the auditor can compare outstandings and accruals of two different periods.

Shyam Agasthya

We will now study ausit vouching of items which appear in the impersonal ledger and relate to Profit and Loss Account. Vouching Of Impersonal Ledger. Auditing – Vouching of Ledger Advertisements. There may be many debits and credits in an account.

He can examine that posting is complete in all respects: Incomes received in ledge The auditor can see that pecking is regularly made to such ledger. The debt outstanding for less than three years is doubtful.

It contains the accounts of persons with whom the business deals, assets possessed by the business and the expenses incurred and income gained by the business.

The vouching procedure does not change for such entries. In order to balance an account, total up the two sides on a separate piece of paper. The items appearing in balance sheet are taken from ledgers.

When principal debtor fails, the guarantor is asked to pay loan. The regular renewal means bad debts. The auditor can vouch Journal to ensure that a voucher supports every entry.


Transporters normally provide bills for transportation charges after closing of financial year. The general ledger provides accounts for preparing profit and loss ledgwr.

Impersonal Ledger | MUDRANKA

Accurate balances can provide true and fair results. Since rent for the month of December, relates to the accounting yearit must be debited to the Profit and 1 Loss Account and shown as a liability in the Balance Sheet. The bills may be accepted for payment of debt.

The auditor can get advice from legal adviser to see that sufficient provision is made for it. The opening balance of purchase ledger is transferred from previous year. The Auditor should confirm that any unpaid amount of rent for the last month of the financial year or any other month of financial year in question should be added to rent of the current year and the rent payable should be shown as current liabilities. The Auditor should see all those expenses and liabilities and all these expenses should be included in profit and loss of the current year to arrive at impersknal true profit or loss of the firm.

The ledgfr should check the totals of all the subsidiary books, and their postings in the relevant nominal accounts in the impersonal ledger. The auditor can check insurance agreement.