Audit - 29. page

Reserves and Surplus The auditor should verify the opening balances of various reserves with reference to the audited balance sheet of the previous year. Additions to or deductions from reserves […]

Balance Sheet Disclosure The Third Schedule to the Banking Regulation Act, 1949, requires disclosure of the following items under the head ‘Other Liabilities and Provisions’: (a) Bills payable (b) Inter-office […]

Audit Approach and Procedures Capital The auditor should verify the opening balance of capital with reference to the audited balance sheet of the previous year. In case there has been […]

Revenue and Other Reserves According to the Notes and Instructions for Compilation of Balance Sheet and Profit and Loss Account, issued by the RBI, the expression ‘Revenue Reserve’ shall mean […]

Balance of Profit This item includes balance of profit after appropriations. According to the Notes and Instructions for compilation of balance sheet and profit and loss account, issued by the […]

Capital Reserves The expression ‘capital reserves’ does not include any amount regarded as free for distribution through the profit and loss account. According to the Notes and Instructions for Compilation […]

Securities Premium Account According to sub-section (1) of section 52 of the Companies Act,2013, where a company issues shares at a premium, the amount of premium should be transferred to […]

Balance Sheet Disclosure The following are required to be disclosed in the balance sheet under the head ‘Reserves and Surplus’. I. Statutory Reserves II. Capital Reserves III. Share Premium IV. […]

Statutory Reserves Under sub-section (1) of section 17 of the Banking Regulation Act, 1949 every banking company incorporated in India has to transfer 20% of its profits to its reserve […]

Investment Reserve Account In the event of provisions created on account of depreciation in the ‘Available for Sale’ or ‘Held for Trading’ categories being found to be in excess of […]