Dear Friends
Kindly post any query relating to Revised Schedule-VI for discussion
CA RITU
PADAMNARUKA
(ARTICLE)
(38 Points)
Replied 25 March 2012
mam
i just want to know, where cash credit (cc loan)will b shown in revised schedule vi.
Abhisek Rungta
(PRACTISING CHARTERED ACCOUNTANT)
(234 Points)
Replied 27 March 2012
| Originally posted by : PADAMNARUKA | ||
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mam i just want to know, where cash credit (cc loan)will b shown in revised schedule vi. |
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IT WILL COME IN CURRENT LIABILITIES - SHORT TERM BORROWINGS AS IT IS REPAYABLE ON DEMAND. AS WHEN BANK DEMANDS IT , WE HAVE TO PAY IT OFF . AND IT IS TO BE RENEWED EVERY YEAR .SO WILL COME UNDER SHORT TERM BORROWING .
Abhisek Rungta
(PRACTISING CHARTERED ACCOUNTANT)
(234 Points)
Replied 27 March 2012
MY QUERY IS THAT IF ANY CLASSIFICATION IS NIL .viz, Long Term provisions are zero for both the years represented in the Balance Sheet . Then we need not show the Sub Heading of Long Term provisions as it is understood that is NIL
CA Ritu
(Audit and Accounts Assistant)
(86 Points)
Replied 27 March 2012
Dear Padamnaruka
A Liability shall be classified as Current for the purpose of Revised Schedule-VI, if it satisfy any of the following condition:-
-It is expected to be setteled in the company's normal operating cycle
-it is held primarily for the purpose pf being traded
-it is due to be setteled within 12months after reporting date
-the company does not have unconditional right to defer settelement for atleast 12months after the reporting date.
So in case of cc limit as already clarified by Mr. Abhishek, it is repayble on demand and have no right to defer the settlement.
Therefore it shall be classified under the head current liability under subhead SHort-term borrowings
CA Ritu
(Audit and Accounts Assistant)
(86 Points)
Replied 27 March 2012
Dear Abhishek
You are right, as the general instruction given for Schedule-Vi also states that, there is no need to make any disclosure if an item is NIL or Not Applicable.
CAclubindia
