Nidhi Tripathi asked 3 years ago
Why b option is correct. What’s the logic behind it?? Nd what’s the relevance of the information invoice raised nd payment made?
Ravi Staff answered 3 years ago
these are debtor balances in books of entity
invoice raised means bill recorded by entity but not customer
payment made means recorded by customer but not by entity
both are timing difference
we can check invoice raised by bills recorded before year the end
and we can check payment by bank statement after year end
from above explanation b is correct answer
Ravi Staff answered 3 years ago
these are debtor balances in books of entity
invoice raised means bill recorded by entity but not customer
payment made means recorded by customer but not by entity
both are timing difference
we can check invoice raised by bills recorded before year the end
and we can check payment by bank statement after year end
from above explanation b is correct answer