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Accounting for Companies-I

Notes  Investor Education and Protection Fund
 Advance payments
 unclaimed dividends
 Interest Accrued but not due

 Tax payable
 Tax deducted at source (TDS).
(b) Provisions: are shown separately such as

 Provision for taxation
 Proposed dividend
 Provision for contingencies
 Provision for provident fund
 Other provisions

Contingent liabilities are such liabilities which may exist or may not exist subject to happening
or not happening the event. It is given as a foot note in the Balance Sheet. Amount of such
liabilities is not included in the total liabilities.
The following are the examples of contingent liabilities:
1. Claims against company, which are still not accepted by the company.
2. Liability for amount uncalled on partly paid shares.

3. Arrears of fixed cumulative dividends.
4. Estimated amount of incomplete contracts.
5. Other contingent liability.

Investor Education and Protection Fund

According to section 205A of the Companies (Amendment) Act, 1999, any amount transferred to
unpaid dividend account of company which will remain unpaid or unclaimed in the said accounts
for a period of seven years from the date of such transfer is required to be transferred by the
company to Investor Education and Protection Fund. Such payment are:
1. Unpaid dividends
2. Matured deposit with companies for seven year
3. Matured debentures

4. Interest accrued on the above
5. Donations or Grants from Government

Did u know? According to section 205 A of the Companies (Amendment) Act, 1999, any
amount transferred to unpaid dividend account of company which will remain unpaid or
unclaimed in the said accounts for a period of seven years from the date of such transfer is
required to be transferred by the company to Investor Education and Protection Fund.

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