Question

Every quarter you close out Wayne’s books and run a quarterly comparison report package for him. This quarter, you notice that numbers are not aligning with your last report package. What is the best way to identify changes made to a closed period?

Answer 1

If numbers are not aligning with the last report, so as to identify the changes, I will check the Journal entries and T accounts of the particular period. I will also check the respected vouchers. I will also ask the Sales manager about any non cash transaction, any transaction that was done not in cash but by giving some items in return. If so, these non cash transactions should be recorded. If company gets payment in goods, it is also an income and should be recorded on the fair market value.