Quicken & Other Budget/Accounting Software/Audited Accounts
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?
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.
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
We sell and support QuickBooks Enterprise