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maam can you just answer by stating simply- reduce(/not) TRs or reduce(/not) TPs:
1. for trade receivables receipts recorded in cash book pre yr end. in bank statement post yr end. reduces TRs bal at yr end?
2. for trade receivables receipts appears in bank statement first, pre yr end. in cash book post yr end. reduces TRs bal at yr end?
3. for trade payables payment recorded in cash book first, pre yr end. but in bank statement post yr end. reduces TPs bal at yr end?
4. for trade payables payment appears in bank statement first, pre yr end. in cash book post yr end. reduces TPs bal at yr end?
thank you so much for all your help! indebted to you for a lifetime…
1. Y/e balance by definition “year end” will take account of invoices raised and cash received before the y/e.
2. Yes – because it would have to be a cash book adjustment – it would be detected by the bank reconciliation.
3. As for 1. the balance at the reporting date must take account of the transactions that precede that date. This would just be a timing difference on the bank reconciliation and supplier’s statement reconciliation.
4. This isn’t possible unless, through an error, the payment hasn’t been recorded in the cash book. So it would be a cash book adjustment.
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