CC A/c in Bank
This query is : Resolved
18 April 2010
Can a practising CA firm whether a sole proprietorship or partnership open a CC A/c with Bank?? I have mostly seen Current Account of CA Firms not CC A/c. If it can open CC A/c then what would be given as hypothecation? Because in CC A/c normarlly business units hypothecate their stocks.
18 April 2010
YES, MR. KAPIL, A SOLE PROPRIETORSHIP OR A PARTNERSHIP FIRM CAN OPEN A CC A/C AGAISNT HYPOTHECATION OF THIER BOOK DEBTS I.E DEBTORS.
18 April 2010
thank you bansal sir, but have u come across practically with such firm having CC A/c??
18 April 2010
I have not.
18 April 2010
DEAR CHACKRAPANI JI,
I AM NOT UNDERSTANDING WHAT U WANT TO SAY BY "I HAVE NOT "?
PLEASE CLARIFY
I AM NOT UNDERSTANDING WHAT U WANT TO SAY BY "I HAVE NOT "?
PLEASE CLARIFY
18 April 2010
I have not come across chartered accountants firm's maintaining CC A/cs with banks.
18 April 2010
I ALSO HAVE NOT COME ACROSS SUCH INCIDENT.
19 April 2010
i have also not come across any such incident
20 April 2010
I AGREE WITH ALL OF YOU.
OUR GROUP COMPANY A/C WITH BOB , I HAVE LOOK AFTER ALL CC LIMIT OF OUR COMPANY. I HAVE DISCUSSED ABOUT IT WITH OUR BRANCH CHEIF MANAGER AND MANAGER-LOANS & ADVANCE REGARDING IT GENREALLY. THEY TOLD IF CA FIRM A/C IN THE BANK HAVING GOOD TRANSACTIONS SINCE MORE THAN 2 - 3 YEARS. THEN FIRM CAN APPLY ON CC LIMIT AGISNT HYPO OF BOOK DEBTS, BUT LIMIT AMOUNT MAY NOT BE HIGH , IT MAY BE UPTO 5 LACS ON THE BASIC OF ACCOUNT TRANSACTION. ACCORDING TO THEM , THERE IS NO PROVISION IN BANK DENYING CA FIRM OR CA PROPERITISHIP TO OPEN CC A/C.
PRACTICALLY I HAVE ALSO NOT COME ACROSS ANY SUCH INCIDENT. BUT IT MAY BE .
I AGREE WITH ALL OF YOU.
OUR GROUP COMPANY A/C WITH BOB , I HAVE LOOK AFTER ALL CC LIMIT OF OUR COMPANY. I HAVE DISCUSSED ABOUT IT WITH OUR BRANCH CHEIF MANAGER AND MANAGER-LOANS & ADVANCE REGARDING IT GENREALLY. THEY TOLD IF CA FIRM A/C IN THE BANK HAVING GOOD TRANSACTIONS SINCE MORE THAN 2 - 3 YEARS. THEN FIRM CAN APPLY ON CC LIMIT AGISNT HYPO OF BOOK DEBTS, BUT LIMIT AMOUNT MAY NOT BE HIGH , IT MAY BE UPTO 5 LACS ON THE BASIC OF ACCOUNT TRANSACTION. ACCORDING TO THEM , THERE IS NO PROVISION IN BANK DENYING CA FIRM OR CA PROPERITISHIP TO OPEN CC A/C.
PRACTICALLY I HAVE ALSO NOT COME ACROSS ANY SUCH INCIDENT. BUT IT MAY BE .
20 April 2010
THANKS MR BANSAL FOE SHARING YOUR EXPERIENCE.
20 April 2010
The querry has opened one area of short-term finance from the banks by the chartered accountancy firms.
Thanks all who participated in the querry.
Thanks all who participated in the querry.
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