Old sundry deposits

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2012 Dear Sir,
During the audit of Bank, we found that there are many old sundry deposits with the bank taken as EMD during the bidding process. These deposits are not demanded by the bidder even they did not succeed in the bidding process.

My question is can bank take these deposits to P&L A/c and w/back or there is some guidelines of RBI for the treatment of un-reconcilable sundry deposits.

Amol S Joglekar

Amol S Joglekar (Expert)
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21 October 2012 These are basically UNCLAIMED deposits. Banker is in the shoes of DEBTOR. Debtor can not unilaterally write off such deposits. RBI has not issued any circular to this effect. As per IFRS, this will be treated under "non current" in days to come.

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2012 Dear Sir,
But this money has been collected as bidding deposit before you participate in bidding process. These deposits are with bank since year 1999 and no records are to determined that who is the owner of individual deposits.

The risk is very high that any one can misuse this money. Hence we want to know that can bank write back this amount to P/L A/c as such money is not yet claimed by the bidder from very long period

Amol S Joglekar

Amol S Joglekar (Expert)
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22 October 2012 Writing back UNILATRERALLY, especially by a DEBTOR is not regarded as GOOD ACCOUNTING PRACTICE.

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