Illustrative of Balance Confirmation Letter to be sent to Debtors – Positive Form
[Letterhead of Entity]
[Date]
[Name and address of debtor]
Dear Sir,
For audit purposes, kindly confirm directly to our auditors (name and address of the auditors) that the balance of Rs xx due by you as on ________ , as shown by our books, is correct. The details of the balance are as under: Note: In case the list of invoices forming the balance is too large, these details may not be given
| Invoice No | Date | Order Reference / Acceptance / Tender No. etc. | Amount | |
| Total Less : Advanced Received Net Amount due by you | xxxx (xxx) xxxx |
A stamped envelope addressed to our auditors is enclosed for your convenience.
If the amount shown is in agreement with your books, kindly strike out the paragraph marked (B) below. Otherwise, please furnish the details in the proforma given in the paragraph marked (B) below and strike out paragraph (A).
In either case, kindly sign at the place provided below and return this entire letter directly to our auditors in the enclosed envelope.
Your prompt compliance with this request will be appreciated. Kindly return this form in its entirety.
Yours Faithfully,
(Signature of responsible official of the entity)
(Name and Address of entity)
(A) We confirm that the above stated amount is correct as at ______
OR
(B) We state that the above-stated amount is not correct as per our records. The details of the balance as at _________ as per our records are as below:
| Invoice Number | Date | Order Reference | Amount |
| xxxxxxxxxxx | xxxx | Total | xxxxxx |
| xxxxxxxxxxx | xxxx | Less : Advanced paid | (xxxxx) |
| xxxxxxxxxxx | xxxx | Net Amount due from us(Rs) | xxxxxx |
Yours faithfully,
(Signature of debtor/responsible official)
Illustrative Balance Confirmation Letter to be Sent to Debtors Negative Form
[Letterhead of Entity]
[Date]
[Name and address of debtor]
Dear Sir,
For audit purposes, kindly write directly to our auditors (name and address of the auditors) if the balance of Rs. due by you as on _______ as shown by our books, is not correct, giving details of the differences. The details of the balance are as under:
Note: In case the list of invoices forming the balance is too large, these details may not be given
| Invoice No | Date | Order Reference /Acceptance/ Tender No. etc | Amount | |
| Total Less : Advanced Received Net Amount due by you | xxxx (xxx) xxxx |
If you do not notify our auditors of any difference within ten days of the date of this letter, it will be presumed that the balance stated above is correct.
A stamped envelope addressed to our auditors is enclosed for your convenience.
Yours faithfully,
(Signature of responsible official of the entity)
Source: Guidance Note on Audit of Debtors, Loans and Advances published in June, 1994 issue of ‘The Chartered Accountant’.
Use Firmway.in for obtaining balance confirmation in compliance with the Guidance Note.
