Whether uncommitted reserves are to be adjusted against debit balance and whether calls in advance are to be shown under the head “Current liabilities and provisions” - Companies Law - Letter: No. 8/16(1)/61‑PR,

Letter: No. 8/16(1)/61 ‑ PR, dated 9 ‑ 5 ‑ 1961. Subject:- Whether uncommitted reserves are to be adjusted against debit balance and whether calls in advance are to be shown under the head Current liabilities and provisions Query: The notes given in the form of the balance sheet in Schedule VI are intended to exhibit the balance as per books. It may be clarified that in respect of the directions given in note (h), there is no necessity to pass entries in the books of account debiting the general reserve and crediting the profit and loss account with the debit balance in the profit and loss account. Further no specific place is given for the exhibition of Calls in advance . Will it be in order to give it a place immediately after Reserves and surplus ? Answer: Notes at the end of Part I of Schedule VI are general instructions for the preparation of balance sheet. As the balance sheet is required to give a true and fair view of the state of affairs of a company and be in the form set out in Part I of Schedule VI, it is necessary to adjust all uncommitted reserves against the debit balance in the profit and loss account. It will be better to show Calls in advance under the head Current liabilities and provisions .