Thursday, May 7, 2015

Steps for Finalisation of Books of Accounts

  • Take the print out of opening trial balance and match it with the last year balance sheet. So any discrepancies identified in early stages.
  • Confirm with sales and purchased department that any pendency are there.
  • Account confirmation from debtors and creditors.
  • Make appropriate provisions for the expenses.
  • Prepare bank reconciliation statement.
  • Identified the expenses which may relate to coming financial year like insurance, rent etc.
  • Make the provision for taxation on the basis of estimated profit.
  • Ledger scrutiny.
  • Prepare the final trial balance.
  • Returns filed during the year like VAT, TDS, Service tax, Excise Duty Etc.,

Manish Kumar Gupta
B.Com, A.C.A
+ 91 9718262561


  1. It would be better if this could have been in detail.

  2. ya it should be in detail it is only few summary points mentioned.

    1. Dear Sir/Madam,

      We will publish in our next article.

    To share own thoughts briefly, for the common goiod of the members of the CA fraternity:
    By any yardstick, the briefly listed so called 'steps' are summary, and expected to be known to even a freshly qualified CA offering and venturing 'audit' of accounts of any entity. As is said,quite rightly so, 'the devil' is always in details. It is, therefore, imperative to equip self with reasonable degree of competence and expertise, so as to perform his professional duties and responsibilities in a manner least deficient , thereby with the least exposure to the attendant risks - in short, with the maximum of proficiency.

    To begin with, he must proceed on the premise that whatever learn t in the course of article- ship , CPE, academic study to qualify, etc., are simply a miniscule of what is ideally required/expected of for practice- either as 'auditor' or tax adviser or any other; hence there is no dearth of scope for learning/keep learning, with no full stop.

  4. It is more important to match your books with the returns filed during the year like Vat, TDS,Service tax,Excise etc...

    1. Dear Mr.Rajguru,

      Yes, tax returns verification also important.I agree with you

      Thanks & Regards


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