Quicken & Other Budget/Accounting Software/Audited Accounts

Advertisement


Question
Hi,

The company's FYE - 31/03/2012

The management accounts as at 31/03/2013 for trade payables - $1,311,766.00 and auditors has made adjustment of Debit $672,425 = &639,341.00

My question is - how do i make a journal entry to record the audit adjustment into the system?

Is the amount of $639,341.00 considered an audited after adjustment amount which i can use it as an opening balance for new fy in April 2012 for trade payables account?

Answer
You need to call the auditors and ask them why they reduced accounts payable.
Ask them for a list of vendors/amounts that make up the 639341.00
Then you will know which vendors on your trade payables list as of 31/3/2012
were not included in the auditors reports.

Most likely you will need to do a reversing JE as of 12/31/12 for each vendor that should
not be on the list.
date 3/31/12
Debit  trade payables   $ xxxx     vendor name
Credit  whatever is the normal expense account     $ xxxx  vendor name

Then do the exact opposite JE as of 4/1/2012
Debit "whatever is the normal expense account" $xxxx vendor name
Credit Trade payables $xxxx   vendor Name

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

We sell and support QuickBooks Enterprise
http//:www.qbalance.com/enterprise_quickbooks.htm

Quicken & Other Budget/Accounting Software

All Answers


Answers by Expert:


Ask Experts

Volunteer


Linda Saltz, CPA, QBalance.com

Expertise

QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

Experience

Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

©2016 About.com. All rights reserved.