How will you present 'Trade Receivables' by way of note in Schedule III of Companies Act, 2013?

CS Executive · Company Accounts & Auditing Practices · PYQS · June 2018
How will you present 'Trade Receivables' by way of note in Schedule III of Companies Act, 2013?

Answer & Explanation:

Disclosure requirements of Trade Receivables As per Schedule III of the Companies Act, 2013, trade receivable will be shown as under by way of note: Aggregate amount of Trade Receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated. Trade receivables shall also be classified as: To the extent secured, considered good; Others, considered good; Doubtful. Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately. Debts due by directors or other officers of the company or any of them either severally or jointly with any other person debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.

Topics: Company Accounts

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