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Description for the Accounts Payable Book Reconciliation Methodology?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 3 years ago

Hi May I know, Description for the Accounts Payable Book Reconciliation Methodology?

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2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Start with the Accounts Payable Book and reconcile to the opposite mirror image adjusted of the Accounts Receivable Book. (Adjust the external debits to credits and external credits to debits to compare internal to internal) Start with the Accounts Receivable Book and reconcile to the opposite mirror image of the Accounts Payable Book (adjust the internal debits to external credits and internal credits to external debits) Use method 1 and furthermore work to 0.00 by listing the breakdown of the net outstanding debits and credits making up the amount outstanding (this will make the next financial periods (for e.g. month) Reconciliation much more easier. 4.Use method 2 and furthermore work to 0.00 by listing the breakdown of the net outstanding debits and credits making up the amount outstanding (this will make the next financial periods (for e.g. month) Reconciliation much more easier

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 3 years ago

Accounts Payable Book Reconciliation Methodology ------------------------------------------------ Different Internationally Generally Accepted Accounting Methods how to do a Reconciliation from the Internal Accounts Payable Book and/or Creditors to the External Accounts Receivalble Book and/or Debtors for net outstanding Reconciliation debits and credits 1. Start with the Accounts Payable Book and reconcile to the opposite mirror image adjusted of the Accounts Receivable Book. (Adjust the external debits to credits and external credits to debits to compare internal to internal) 2. Start with the Accounts Receivable Book and reconcile to the opposite mirror image of the Accounts Payable Book (adjust the internal debits to external credits and internal credits to external debits) 3. Use method 1 and furthermore work to 0.00 by listing the breakdown of the net outstanding debits and credits making up the amount outstanding (this will make the next financial periods (for e.g. month) Reconciliation much more easier. 4.Use method 2 and furthermore work to 0.00 by listing the breakdown of the net outstanding debits and credits making up the amount outstanding (this will make the next financial periods (for e.g. month) Reconciliation much more easier 5. Start with zero , work to the accounts Receivable Book and from there to the Accounts Payable Book. 6. Start with Zero , work to the Accounts Payable Book and from there to the Accounts Receivable Book. 7. Adjust the Values in the Accounts Payable Book to the way it should be after internal adjustment journal entries captured and posted for the internal Accounts Payable Ledger and adjust the Values in the Accounts Receivable Book of the external supplier how it theoretically should look after adjustment journals captured and posted should theoretically look in their system. If the Reconciliation is done correctly , these two values should be an opposite mirror image of each other for e.g. if the Accounts Payable Book shows US $ 10 ' 000 ' 000 , 00 Credit Value in the Internal Accounts Payable Ledger (Ten Million United States Dollars Due and Payable within the Credit Terms Date Limit) , the Accounts Receivable Book should show US $ 10 ' 000 ' 000 , 00 Debit Value in the external Accounts Receivable Book (That after the transaction has been captured , posted , payment plan inclusive allocated and transferred should reflect as Ten Million United States Dollars direct Bank Transfer reflected in Bank Accounts as Bank Cleared and available as Cash and/or Values against which Company cheques can be issued) 8. An explanation how the internal Accounts Payable payments after captured and posted is come by. 9. An explanation how the external Accounts Receivable Collectable due and payable is arrived at (as per Statement) 10. An internal Accounts Payable Allocation sheet for the previous and current Financial Period (In the event of partial Allocations for invoices and/or payments this values and payments sheet is very important). 11. An external Accounts Receivable Allocation sheet for the external previous and current Financial Period. (In the event of partial Allocations for invoices and/or payments this values and payments sheet is very important). 12. A combination of all the above. **Theoretically the Statement of the External Accounts Receivable should have 3 major parts (of which the adjusted internal Accounts Payable Book plus Reconciliation(s) is a opposite mirror image reflection) :** - The net outstanding items at the end of the previous period it est the net debits and credits making up the Accounts Receivable Book that is the Closing Balance of the previous month (and/or financial period applicable) and also the opening balance of the current month (and/or financial period applicable) - The external allocation sheet showing full allocations and/or full and partial allocations reflecting the internal values and payments/allocations/debit allocation/credit allocation/debit reversal/credit reversal - The net outstanding items (and a correct Statement sent out must have minimum this part) of only the net outstanding opening Balance (plus a subsection explaining which specific debits and credits makes it up) and also the additional only net outstanding debits and credits (debits for e.g. invoices and credits for e.g. unallocated as yet payments)

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