30 July 2012
some unscrupulous crook presented one forged Cheque of a company in bank and bank cleared the cheque. Company has filed a suit against bank in consumer court.Company is showing the amount of loss as Bank Suspense A/c on Asset side and not writing it off in profit & loss a/c. is it a contingent asset or not? Can we issue a clean report giving a note regarding above or we have to qualify report? (Loss in respect of above is 9lacs and its net profit is 11 Lacs)
30 July 2012
You shoudnot qualify the report and instead give diclosure in noted to account with amount of Rs. 9 lacs shows as contigent assset.bz case is pending in the court and it qualifies the def. of contigent asset.
CAclubindia
