INTERPRETATION

(1) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires :  the expression ‘provision’ shall, subject to sub-clause (2) of this clause, mean any amount written off or retained way of providing Read More …

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FORM OF BALANCE SHEET

Part I, Schedule VI to the Companies Act, 1956, prescribes the form of balance sheet and the requirements relating thereto. It should be noted that in addition to the requirements of the body of the Form which sets out instructions Read More …

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PRESENTATION OF FINANCIAL STATEMENTS

Section 211 provides that every balance sheet of a company shall give a true and fair view of the state of affairs of the company as at the end of the financial year and shall, subject to the provisions of Read More …

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Interim Dividends

A company may distribute part of its profits during the two annual general meetings. That means, a company may declare dividends before the close of the accounting year and finalisation of accounts. Regulation 86 of Table ‘A’ of Schedule I Read More …

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AUDIT OF DIVIDENDS

Verification of Dividends In PE-II study material on Accounting, the various conditions subject to which profits are earned a company can be distributed as a dividend have been discussed. Therefore, only then procedure for the verification of payment of Read More …

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Re-issue as Collateral Security

Quite frequently debenture are issued as collateral security to creditors, bankers or other parties. The nominal value of the debentures deposited as security generally exceeds the amounts of the loan 10 or 20 per cent. In such a case, Read More …

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Re-issue of Redeemed Debentures

A company may issue debentures previously redeemed, either reissuing the debentures or issuing others in their place unless the Articles or a contract or resolution, recorded at a General Meeting, or terms of issue or some other act Read More …

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Interest on Debentures

The payment of interest should be vouched with the acknowledgment of the debenture holders, endorsed warrants and in the case of bearer debentures, with the coupons surrendered. The total amount paid should be reconciled with the total amount due and Read More …

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Redemption of Debentures at a Premium

The provision for the premium payable on redemption of debentures may be made in either of the following two ways : The total amount of premium payable on redemption may be debited to an account denominated as “Loss on Issue Read More …

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