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    Vouching of Building N Bill Payable

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    Mohammed Bilal
    This document discusses the procedures for vouching the purchase of a building and bills payable. For purchasing a building, documents like the title deed, mortgage deed, broker's note, contract, receipts, architect's certificate, fixed asset register and minutes of director's meetings must be examined. The procedures include verifying ownership, lease details if applicable, purchase details, capitalization of incidental charges, and contractual agreements. For vouching bills payable, the auditor checks bills paid against the cash book, bills not matured against the bills payable ledger balance, tests some bills by verifying with creditors, and does general checks of postings, casts and carry forwards.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Vouching of Building N Bill Payable

    Uploaded by

    Mohammed Bilal
    639 views10 pages
    This document discusses the procedures for vouching the purchase of a building and bills payable. For purchasing a building, documents like the title deed, mortgage deed, broker's note, contract, receipts, architect's certificate, fixed asset register and minutes of director's meetings must be examined. The procedures include verifying ownership, lease details if applicable, purchase details, capitalization of incidental charges, and contractual agreements. For vouching bills payable, the auditor checks bills paid against the cash book, bills not matured against the bills payable ledger balance, tests some bills by verifying with creditors, and does general checks of postings, casts and carry forwards.

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    Original Title

    Vouching of Building n Bill Payable

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    This document discusses the procedures for vouching the purchase of a building and bills payable. For purchasing a building, documents like the title deed, mortgage deed, broker's note, contract, receipts, architect's certificate, fixed asset register and minutes of director's meetings must be examined. The procedures include verifying ownership, lease details if applicable, purchase details, capitalization of incidental charges, and contractual agreements. For vouching bills payable, the auditor checks bills paid against the cash book, bills not matured against the bills payable ledger balance, tests some bills by verifying with creditors, and does general checks of postings, casts and carry forwards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    639 views10 pages

    Vouching of Building N Bill Payable

    Uploaded by

    Mohammed Bilal
    This document discusses the procedures for vouching the purchase of a building and bills payable. For purchasing a building, documents like the title deed, mortgage deed, broker's note, contract, receipts, architect's certificate, fixed asset register and minutes of director's meetings must be examined. The procedures include verifying ownership, lease details if applicable, purchase details, capitalization of incidental charges, and contractual agreements. For vouching bills payable, the auditor checks bills paid against the cash book, bills not matured against the bills payable ledger balance, tests some bills by verifying with creditors, and does general checks of postings, casts and carry forwards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    VOUCHING OF

    PURCHASE OF BUILDING
    AND
    BILLS PAYABLE

    Meaning of Vouching
    The exercise of establishing and verifying the
    accuracy and authenticity of the accounting entries
    passed in the book of account with reliable evidences
    are technically called 'vouching'. It means vouching
    is the testing the truth of all the entries made in the
    book of accounts.
    It may be related to cash as well as trading
    transactions.

    Objectives of Vouching
    1. Proper Evidence
    The purpose vouching is to note that proper evidence
    is available
    for every entry. The signatures, initials and rubber
    stamp are
    evidence that document has been authorized and
    checked.
    2. Proper Authority
    The purpose of vouching is to note that there is
    proper authority
    behind every transaction. In the absence of any
    signature of
    manager the transaction are not acceptable at all.
    3. Right Period
    The purpose of vouching is to check that date of the

    4. Correct Amount
    The purpose of vouching is to check that correct amounts have
    been recorded in the entry. The vouching is useful to record only
    correct amounts in the books of accounts.
    5. Capitals and Revenue Analysis
    The purpose of vouching is to examine the analysis of transaction
    into capital and revenue. The expense relating to one year is
    treated as revenue other wise it is called capital.
    6. Purchase for Business
    The purpose of vouching is to check that purchase relate to the
    nature of business. The private purchase cannot be recorded as
    business due to vouching.
    7. Arithmetical Accuracy
    The purpose of vouching is to see the arithmetical accuracy of
    Books
    of accounts. The auditor to confirm that books are accurate can
    Check the total subtotals, casting and posting.

    VOUCHING OF
    PURCHASE OF BUILDING
    DOCUMENTS REQUIRED FOR VOUCHING :1. Title deed
    2. Mortgage deed in case of mortgage
    property
    3. Brokers note
    4. Contract
    5. Receipts
    6. Architects certificate
    7. Fixed asset register
    8. Minutes of the directors meeting

    VOUCHING PROCEDURE :1. The building may be freehold or


    leasehold: If it is freehold, it should
    be verified with the owner's title. But if
    it is leasehold, the lease deed should
    be examined.
    2. Nature of purchase: If the property
    is purchased directly from the vendor
    and if any contract is made with the
    vendor, that contract should have to
    be checked.
    3. Ownership Title: It is also required to
    be examined whether the ownership

    Cont

    4. Incidental Charges: Various


    incidental charges are required to be
    incurred for the purchase of building.
    E.g. registration expenses of the
    property. These expenses should be
    verified with proper documents and
    receipts and the auditor should also
    confirm that these expenses have been
    duly capitalized.
    5. Contractual agreement: The
    contract made with the building
    contractor should be examined and in

    VOUCHING OF BILLS PAYABLE


    VOUCHING PROCEDURE:1. Checking Against Cash Book :Auditor should check the bills paid
    during the period and compare to with
    the cash book and bill returned.
    2. Checking Of Bills Not Matured :Auditor should check the total bills not
    matured and should see also these
    should agree with the credit balance
    on the bills payable account in the
    ledger.

    CONTI
    3. Test checking :- Auditors should
    verify bills payable with creditors.
    4. General Checking :Auditor should check the postings of
    the bill payable. He should also check
    the casts, cross casts and carry
    forwards.

    THANK U

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