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Ledger Scrutiny

Ledger scrutiny involves checking that account balances are correct in the trial balance and identifying reasons for any incorrect balances. It also involves analyzing recurring patterns in ledgers like checking that rent is paid regularly each month according to the rental agreement. When scrutinizing share capital, one should check that all call money has been received, any fresh shares issued were within the authorized capital limit, and expenses from share issues were properly recorded in the income statement or balance sheet. Ledger scrutiny in accounting software also involves adhering to accounting standards and principles, analyzing expenditure trends, ensuring statutory compliance, and linking transactions to proper accounts with correct accounting treatment.

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Prithika Karwal
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905 views

Ledger Scrutiny

Ledger scrutiny involves checking that account balances are correct in the trial balance and identifying reasons for any incorrect balances. It also involves analyzing recurring patterns in ledgers like checking that rent is paid regularly each month according to the rental agreement. When scrutinizing share capital, one should check that all call money has been received, any fresh shares issued were within the authorized capital limit, and expenses from share issues were properly recorded in the income statement or balance sheet. Ledger scrutiny in accounting software also involves adhering to accounting standards and principles, analyzing expenditure trends, ensuring statutory compliance, and linking transactions to proper accounts with correct accounting treatment.

Uploaded by

Prithika Karwal
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Re: How i do ledger scrutiny(give the examples of rent share capital etc.

) Answer Ledger scrutiny means to check # 1 whether the closing balance

is showing the natural closing balance in trial balance. e.g. Dr. Bal for all the expenses and Cr. bal for all incomes. If it is not showing the natural balance the person scrutinising has to find out the reasons for the same. One has to find the recurring behaviour of ledger like rent for Monthly debits
How i do ledger scrutiny(give the examples of rent share capital etc.) Answer #2

In case of rent paid we have to see that whether in rent A/c 1.rent is paid regularly,consistency shd b there 2. Amount of rent paid shd be in accordance with rent agreement 3. Security deposit with the land lord shd nt be charged in rent A/c 4. If we r paying the property tax also then we shd see tht it shd mention in rent deed. Share Capital 1 We shd check is there any fresh issued share capital during the year 2. if issued then the company shd hv the authorised share capital upto issued new share. 3. whther all d call money has been received properly or not in issue of share capital.

4. and we shd also see if share r issued as bonus then the expenses incurred on such issue can be claimed in P& L a/c but in other case expenses on issue of share cant be claimed in P & L a/c Ledger scrutiny in tally 1.Adhearance to accounting standards 2.Proper grouping of ledgers 3.Adhearance to accounting principles 4.Adhearance to ICAI guidelines 5.Adhearance to the principles of double entry system 6.Trend analysis in regular expenditure 7.Statutory compliances 8.Proper narration in entries 9.Long outstandings 10.Linkage between the grouping and the nature of transaction entered into with various parties 11.Booking of expenditure 12.Proper realisation of income 13.Linkage between accounting treatment and narration 14.Proper accounting treatment 15.Seperate accounting treatment of income and expenditure 16.Entry in proper voucher type

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