sundry debts, page-6

I once worked for a company where the MD was only interested in the P&L.

So the FD made up his own consultancy and billed the company. Both sides of the entry were recorded in the BS (Creditors & Sundry Debtors).

As the bank account reconciled, nobody asked questions with a few k disappearing each month.

I guess his intention was to enter credit notes when he could afford to, so in the long run nothing would be found out. Unfortunately, business went bad, and after he left, it got found out by yours truly. Needless to say that the consultancy invoices were missing and most BS accounts hadn't been reconciled.

I'm sure he intended to pay it back, but sometimes business doesn't pan out the way you like, and you end up exposed.

Of course, I'm not saying that this is what is happening with TZ. I'm just saying what can happen if an eye isn't kept on things.