Making entries of all Sales Invoices raised during said period.
Making entries of all Purchase Bills received during said period.
Make all entries of Bank as per Bank Statement, Cheque Book, Receipt Book and Payment Advice.
Make all Cash entries as per Cash Voucher/Receipt Book/Cash Sales Bill book/Payment Advice
Make entries of Electricity, Telephone, Salary, Interest Paid to others, Interest received from others, Insurance Payments, Fixed Asset Purchase/Sale(if not booked through purchase/sales ), Depreciation/Amotization, etc..
Long Term Borrowings
Duties and Taxes
Cash in Hand
Cash at Bank
Receive Payment against Invoice
Confirm whether all the Basic Financial documents require for Book Keeping and Accounting are received. Basic Financial Docuemts are Sales Invoices, Purchase Bills, Expenses Bills, Cash Vouchers, Bank Statements, Credit Card Statements,etc
Following points need to be checked
Once entered check whether all the entries are entered in correct head
Check HSN code and GST rates are correctly charged. Cross check with GST/VAT rates to confirm whether entries are done correctly
In case inventories are maintained, confirm whether correct inventory item was selected while making the entries.
Any Sales Invoice exceeds Rs.50000/-(in case of interstate sales) or Rs.100000/-(in case of intrastate sales) check whether E-way bill is generated for same.
Check whether correct GST registration number of customers are entered while making Sales Entries
In case of Export of Goods, check whether shipping bill is on records. Foreign exchange rate is to be taken as per shipping bill. In case of export of service, foreign exchange rate is rate as on date of invoice.
Following points need to be checked
Once entered check whether all the entries are entered in correct head.
Cross check with GST/VAT rates to confirm whether entries are done correctly.
In case inventories are maintained, confirm whether correct inventory item was selected while making the entries
Cross check all the purchase entries with GSTR2A. In case any entries are missing in GSTR2A, contact the concerned vendor/inform the client regarding same. In case if any entries are found in GSTR2A but Purchase Bill is not available, call for purchase bill to record the transaction in correct head.
Points need to be checked are
Check the opening balance of said period and reconciliation of same. If there is differences, check and rectify the same
Enter all the transactions in Bank Statement in correct head.
Recognise the Purchase Bill against which payment is made
Recognise the Sales Invoice against which amount is received
In case of Bank Charges, ensure GST on same is entered
Enter all cheque issued but not cleared
Enter all cheque received but not cleared
Prepare Bank reconciliation statement at the end of every month
Make entries of all cash sales, if any
If Bank entries has been done, check whether all entries of Cash Withdrawal from bank is reflected in cash ledger
Make all entries of Cash received from Debtors
Ensure that receipt against Single Sales Invoice on different dates/Single Person against multiple invoice in single day does not exceed Rs.200000/-
Make all entries of cash purchases/expenses
If Bank entries has been done, check whether all entries of cash deposit is reflected in cash ledger
Make all entries of cash payment to creditors
Ensure that cash payment does not exceeds Rs.10000/- in single day to single person.
Points to be checked
Whether all monthly recurring expenses such as Electricity/Telephone/Salary is accounted
Prepaid expenses need to recognise while making entries for Insurance/Yearly Subcription
Ensure whether GST credit has been taken wherever applicable
Ensure depreciation working has been done correctly as per applicable statutory depreciaiton rate
Transfer of Input and Output GST in GST payable account. It should be the liability/excess credit in GST return
If any capital is introduced by partner/proprietor, same needs to be credited to there capital account after confirming the same.
In case of Company, check the Share Allotment form and pass the entries accordingly.
Check whether all the balances are tallied with Bank Statements. In case differences, keep the reconciliation on record.
In case loan is taken from any person other than bank, confirm whether interest needs to be paid during the period under consideration
TDS Payable: Check whether TDS is deducted correctly wherever applicable. Check whether the TDS payable reflecting in ledger is actually payable. In case of differences, find reasons for not making payment and journal entry should be passed accordingly. Ensure TDS payment and filing TDS return should be within due date.
Prepare the list of all Purchase invoices along with ratewise details.
Reconcile the same with GSTR2A. Inform the client in case of any missing bills in GSTR2A. Check the Invoice if there is any mismatch in data. Call for Purchase Invoice if any invoice find in GSTR2A but not in accounts.
Check whether credit of RCM paid in previous month is taken
No credit has been taken for following
Purchases for construction Immovable Assets,
Motor Vehicle(except in case of business of supplying vehicles, transporter of goods/passenger, imparting training of such vehicles)
Foods & Beverages, Outdoor Catering, Beauty Treatment, Health Services, Cosmetic and Plastic Surgery(Except they are dealing in same business i.e. category of inward and outward supply is same)
Service of General Insurance (except in case of business of supplying vehicles, transporter of goods/passenger, imparting training of such vehicles, Manufacturer of motor vehicle or in supply of General Insurance Service)
Service of Servicing/repairs and maintenance of vehicles (except in case of business of supplying vehicles, transporter of goods/passenger, imparting training of such vehicles, Manufacturer of motor vehicle)
Membership in Club, Health and Fitness center(except cleint are in same business)
Rent a Cab, Health and Life Insurance Services(except cleint are in same business)
Travel Benefit for employees on vacations
goods lost, stolen, destroyed, written off or given off as gift or free samples
Input Tax credit taken during the month should be transfer to GST payable account
Prepare the list of all Sales invoices along with ratewise details.
Confirm that all the Sales Invoices are in series and no sales invoice is missing
Confirm whether GST number are provided for all B2B sales
Prepare HSN/SAC wise summary of all Sales Invoices in case turnover exceeds Rs.1.5 crore in year
Calculate the RCM-GST and made the provision accordingly. GST under Reverse Charge Mechanism is require to be paid on Freight, Advocate Fees, Director's Remuneration, etc
Output GST is to be transfer to GST payable
Check whether the GST payable reflecting in ledger is actually payable. In case of differences, find reasons for not making payment and journal entry should be passed accordingly. Ensure the GST payment and filing return should be within due date
All the provision i.e. Salary, PF, ESIC, Telephone, Electricity, etc for period under consideration is require to be made. Pass the Journal Entry accordingly. Ensure that PF and ESIC payment is made within due date.
Check whether all the payment made is against reference to Bill/Invoice. If possible take the Bill wise details of creditors.
Creditors having debit balances: Check whether Bill is require to be booked in such cases or it is actual advances
In case of Company, take the MSME registration certificate from creditors and bifurcate as Micro Small Enterprises and other than Micro Small Enterprise
Check is there any addition in Fixed Assets. Check, in case of Building under construction, no GST credit is taken.
In case of Intangbile under development, keep the record of basis of calculation.
Check any Investment is made during period under consideration.
Any Income is received from Investment made during period under consideration
Take the Balance Confirmation of all Investments
Check whether all the payment made is against reference to Bill/Invoice. If possible take the Bill wise details of Debtors.
Debtors having Credit balances: Check whether Bill is require to be booked in such cases or it is actual advances.
If excess received is actual advance and advance is against services to be provided, than GST is require to be paid on such advance
Physical Cash in Hand as on last day of period under consideration is tallied with books of accounts
Check whether any payment for expenses exceeds Rs.10000/- per person per day.
Any amount received above Rs.2 Lakhs from a person in a day or from single transaction or in respect of transaction relating to one event or ocassion from a person
Check balance as per Bank Statement. In case of difference prepare reconciliation and keep the same on record
In case cheque issued but not presented for payment, reverse the entry if it issued before 3 months
In case cheque deposited but not cleared, reverse the entry if it deposited before 3 months
In case of Company, bifurcate the Sales as Sales of Products and Sales of Services
Check whether any Sales booked directly thorugh bank receipt entry.
If any Fixed Assets Sales has been booked through Sales Ledger, make necessary journal entry for same
Check whether any purchases booked directly thorugh bank payment entry.
Check whether TDS is deducted wherever applicable
Check all the credit entries in Purchase Ledger and whether it is correctly accounted for.
Check that no Indirect Expenses/Fixed Assets account were debited to Purchase Ledger
Check whether expenses were debited to proper head
Bifurcation of Direct and Indirect expenses should be properly made
Check whether TDS is deducted wherever applicable
Check all the credit entries in expenses Ledger and whether it is correctly accounted for
Check expenses such as Salary, Telephone, Electricity,Rent,etc were entered every month