Bank a/c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 transactions of an organization are done through bank a/c which is in name of chairperson of that organisation, how to show it in balancesheet should it be bank account or any other head, please reply

Amol S Joglekar

Amol S Joglekar (Expert)
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27 November 2014 What form of organisation is this?
If it is a society, ask the managing committee to ratify the same. Till that time you can show it as Receivable in the name of Chairperson

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 November 2014 Its appear that Imprest accounts are maintained for those employees incurred expenses in on behalf the organization.

In that case Debit balances on the date of balance sheet required to show under the short term loans and advances (Asset)(Employees) otherwise
Current Liabilities (others)

Note: One can knocked off credit and debit balances as on date of Balance sheet

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 it is society, what effect would be in cfs?

Amol S Joglekar

Amol S Joglekar (Expert)
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28 November 2014 Ask the managing committee to ratify the transactions.
Pass the resolution to open the account in the name of society
Pass the resolution to transfer the funds from chairman's account to Society's account.
Take a declaration of Chairman and keep it on record.