Page 106 - DCOM409_CONTEMPORARY_ACCOUNTING

Unit 8: Corporate Reporting

Investor Education and Protection Fund Notes
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

Did u know? What are the contingent liabilities?
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 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. 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

8.5.2 Statutory Contents of Assets side of Balance Sheet

1. Fixed Assets: Fixed assets are those assets, which are used for long-term in the business.
Different assets are shown separately at their original cost and addition to and deductions
for depreciation provided for. Fixed Assets include
(a) Goodwill
(b) Land and Building
(c) Lease hold
(d) Railway sidings

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