Acceptance of deposits rules

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SONAM JAIN (Querist)
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23 July 2010 1. The public limited company receives deposits from directors, shareholders and their relatives.so tell me where it should be shown in the balance sheet.. whether in the head of loan funds or in the head of current liabilities??

2. If the company shown the deposits in the current liabilities..then tell me whether it will be trated as deposits??

Jagruti (CS)

Jagruti (CS) (Expert)
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23 July 2010 Public COmpany can receive deposits from Director which will be shown under head unsecured loan.

If taken from Shareholder and their relatives Co. has to COmply with the Deposit Rules. and it will be also shown under head "Unsecured Loan".

Even if it shown as Current Liabilities(CL) it is Deposits only.

When tenuer of loan is less than a year it is shown under CL otherwise unsecured loan

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