What are Capital Reserve? The term capital reserve does not include any amount regarded as free for distribution through the Profit and Loss Account. A capital reserve is
What is Specific Reserve? A specific reserve is one, which is created for some specific purpose by debiting Profit and Loss Appropriation Account. Normally, it is available for
What are Secret Reserves The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. Secret reserves are also called
What are Reserve funds? The word “Fund” in relation to any reserve can be used only where such a reserve is specifically represented by earmarked investments. In other
Meaning of Vouching Vouching involves not only the substantiating the entry in the books of account with any documentary evidence like assessments, receipts, counterfoils of receipt book or
Evaluation of internal control on loans and advances 1. The internal control system should ensure that the borrowings and advances are within the limits and the persons involved
Guidelines for auditors in Verification of Creditors 1. The postings in purchase ledger are to be checked by verifying the books of prime entry. The postings may be
Guidelines for auditors in verification of Bills Payable It is the duty of the auditor to ensure that the bills that are paid are duly cancelled and only
Guidelines for Auditors regarding verification of Loans from Banks An organization may enjoy a cash credit facility with a bank or avail Term loan from the bank. In
Guidelines for Auditors in Verification of Debentures The Companies (Amendment) Act 2000, has introduced various provisions to safeguard the interest of the debenture holders. The amendment requires the