This guide is in English for now. The tool itself works in your language.
Khata › Statement of account
Statement of account: what it shows and how to send one
A statement of account is a copy of the customer's page in your books for a period. It answers "how did you get to this amount?" before the customer has to ask.
What is on a statement
- Your business name, address and GSTIN at the top, and the customer's name.
- The period, for example 1 April 2026 to 31 October 2026.
- Opening balance on the first day: what was due before the period.
- Every bill, return and payment in the period, each with its date, number and amount in the Debit or Credit column.
- Running balance after each line, and the closing balance at the end.
- A list of the bills still unpaid, so the customer knows exactly what to pay.
Reading Dr and Cr
The statement is written from your side of the books. Debit (Dr) amounts increase what the customer owes you (bills, debit notes, refunds you paid them). Credit (Cr) amounts reduce it (payments, TDS they cut, credit notes for returns). A closing balance marked Dr means they owe you; Cr means you owe them, usually an advance.
The customer's own books show the same entries the other way round: in their books your account is a creditor, so your Dr is their Cr. That is why the two statements "match" only when the sides are swapped.
A sample
| Date | Particulars | Debit | Credit | Balance |
|---|---|---|---|---|
| 01 Apr 2026 | Opening balance | 8,000.00 Dr | ||
| 12 May 2026 | Invoice INV/26-27/031 | 23,600.00 | 31,600.00 Dr | |
| 30 May 2026 | Receipt RCT/26-27/019 (NEFT) | 20,000.00 | 11,600.00 Dr | |
| 08 Jun 2026 | Credit note CN/26-27/004 (return) | 1,180.00 | 10,420.00 Dr | |
| Closing balance | 23,600.00 | 21,180.00 | 10,420.00 Dr | |
Check: 8,000 + 23,600 − 20,000 − 1,180 = 10,420.
Balance confirmation at year end
Many businesses, and most auditors, ask customers and suppliers to confirm the balance as on 31 March. Send the statement for the full year with a line such as "Please confirm the balance of ₹10,420 Dr as on 31-03-2027, or tell us the difference within 15 days." A written "confirmed" reply (email or WhatsApp) is good proof if there is a disagreement later.
When the customer's figure is different
- Match payments first: the most common gap is a payment one side has not recorded, or a cheque still in transit.
- Look for TDS. A business customer may pay less and deduct TDS; it is still a payment, recorded as "TDS cut by the customer".
- Look for returns and discounts that need a credit note.
- Agree the difference line by line, then correct your books with a proper entry, not by changing old ones.
Here, open the customer under Parties, set the dates, and press Print or Share PDF. The statement is printed in English so any accountant or bank can read it.