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Audit of Trade Receivables

Auditing

What is the difference between realization of trade receivable INVOICE WISE and realization of trade receivable made ON ACCOUNT.

MAHITHA SENTHIL KUMAR

CA Final

★ 800

28-Jul-20 19:54

360

Answers (2)

INVOICE WISE means payments are made by debtors against each invoice (invoice wise settling of dues) so there is invoice break up of the balance due ON ACCOUNT means payments are made adhoc (not against particular invoice amount) so there is a running balance and the closing balance cannot be attributed to particular invoices