Whether uncommitted reserves are to be adjusted against debit balance and whether calls in advance are to be shown under the head “Current liabilities and provisions”
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Uncommitted reserves adjustment: set off against profit and loss debit balance; calls in advance treated as current liabilities. All uncommitted reserves must be set off against the debit balance in the profit and loss account so the balance sheet presents a true and fair view. Calls in advance should be shown under the head Current liabilities and provisions, appropriately placed immediately after Reserves and surplus in the prescribed balance sheet format.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Uncommitted reserves adjustment: set off against profit and loss debit balance; calls in advance treated as current liabilities.
All uncommitted reserves must be set off against the debit balance in the profit and loss account so the balance sheet presents a true and fair view. Calls in advance should be shown under the head Current liabilities and provisions, appropriately placed immediately after Reserves and surplus in the prescribed balance sheet format.
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