Day: December 24, 2021

Considering the requirement of AS 19, “Lease”, which classify transaction into  finance lease or  operating lease. In case of operating lease, lease payment should be recognised as an expense in the Statement of Profit and Loss on a straight-line basis Read More …

Where a movable asset, such as motor car or machinery has been acquired on a hire-purchase basis, it should preferably be adjusted in accounts at its cash value by raising a liability for the amount payable to the financing company Read More …

1. Under sub-section (1A) of section 227 Clause (e) requires personal expenses charged to the revenue account of a company should be reported. 2. Under section 293, the Board of Directors of a public company or of a private company Read More …

The purchase of an asset must be duly supported by the receipt for the amount paid. In case of an immovable property the auditor must also inspect the title deeds. The title of an immovable property passes only on registration. Read More …

The following points must be considered while vouching the directors’ remuneration in case of a public company and private company which is a subsidiary of a public company –  Examine the Entitlement: The directors are not automatically entitled to remuneration. Read More …

A director of a company or his relative, a firm in which a director or his relative is a partner or a private company of which the Director is a member, cannot enter into any contract with the company for Read More …