Mayur Nikul Upadhyay (Article) (74 Points)
21 December 2011Hey friends,
I m confused regarding the grouping of FD with Bank.
Company is showing FD with bank Amount is (Rs. 5.8 Cr) under B/S--->CA---->FD with Banks
and there are atlest 7-8 transaction in 1 year in that account..
Where according to you should it be grouped & hw should it be audited??
ashish gupta
( student)
(1922 Points)
Replied 21 December 2011
It should be under bank account only (current asset)
Mayur Nikul Upadhyay
(Article)
(74 Points)
Replied 21 December 2011
But may i knw what is the logic(reason/Explanation) for your answer
ashish gupta
( student)
(1922 Points)
Replied 21 December 2011
FDR is just a type of bank account opened with the bank.
you can utilise and withdraw the amount as and when you require (though you may loose some interest), but there is no restriction on the utlisation of amount.
So it should be treated as cash in bank only.
In some cases FDR is required as security for bank guarantee. You can check if that is the reason for the FDR and if FD is pledged with the bank
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
