Whether to qualify report or not?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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)

aadish

aadish (Expert)
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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.

hope ur query is resolved.