An account should be treated as ‘out
of order’ if the outstanding balance
remains continuously in excess of the
sanctioned limit/drawing power. In
cases where the outstanding balance in
the principal operating account is
less than the sanctioned limit/drawing
power, but there are no credits
continuously for 90 days as on the date
of Balance Sheet or credits are not
enough to cover the interest debited
during the same period, these accounts
should be treated as ‘out of order’.
No comments:
Post a Comment