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Disclosure in notes to accounts

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This query is : Resolved

Sumit kukreja (Querist)
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26 March 2016 What to write in notes to accounts of Balance sheet if we found some suspicious entry in our bank account and we are not taking it into consideration as we are not done with the investigation on it ?

CA ANU RADHA

CA ANU RADHA (Expert)
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28 March 2016 Hi, I presume the queriest is the client and not the auditor. Once you notice a suspicious entry, you are duty bound to inform your banker about the same who will in turn investigate from Anti-money laundering point of view. If you wilfully conceal the fact from your banker, you may be penalised under the above Act. Hence, in your own interest, you may bring it to the notice of your banker under proper acknowledgement. As regards accounting part of it, you may disclose under Other Current Liabilities in your books. Your letter to the banker will be a good evidence in case your accounts are taken up for scrutiny by Tax Authorities. Hence, do not delay.

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