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Query Details

Asked by Suhaani on :Feb. 13, 2018

What points shall an auditor keep in mind while a…

What points shall an auditor keep in mind while auditing an account of Bought Ledger having a debit…

What points shall an auditor keep in mind while auditing an account of Bought Ledger having a debit balance?

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Chiranjibi Aug. 24, 2018

A bought ledger is a system of accounting by which business records and monitors its creditors. The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit.An account in the Bought Ledger may be in debit. The balance may represent the amount receivable on account of goods returned, rebate allowed by the supplier or advance paid against an order.

Click on this link to see the article where I have explained how to audit bought ledgers with a debit balance.

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