Bank guarantees

AS 278 views 2 replies

Hi,

 

With just one post I wanted to demystify  bank guarantee doubts globally

 

Bank Guarantee is not entered in the books of accounts. As per Part 3 to Schedule VI of the Companies Act, 1956, BG should be shown by way of discloser as Contingent Liabilited in Annual Report of the Company. Hence No entry is passed at all.

 

Txs

Replies (2)

Currently Schedule III of the Companies Act 2013 , applicable for financial statements.

Contingent liability are mentioned as notes on accounts.


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