Section $227 (2)$ of the Companies Act, requires the auditor to give his report to the members of the company on certain matters. Which of the following is not included in the given?

Accounts examined by him

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Every balance sheet and profit and loss account laid before a general meeting during his tenure

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Every document that is a part of or 'annexed to' the balance sheet

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Every document which is attached to the profit and loss account

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Solution

The correct option is A Every document which is attached to the profit and loss account
Not all the documents attached to profit and loss account is required to form part of auditor's report.
The documents may include the working papers, other internal and external evidences, etc., which are a property of the auditor only.
However, the other options mentioned in the question are integral and may form part of auditor's report.

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Q. _________ copy(s)of the Balance sheet and profit and loss a/c are required to be submitted to Registrar of the Companies with

30

days of Annual General Meeting.

Q. General Instructions for preparation of balance sheet and statement of profit and loss of a company are provided in _________ of the Companies Act, 2013.

Q. The final accounts of a manufacturing company generally include the following statements.
i) Balance Sheet
ii) Manufacturing Account
iii) Profit and Loss Account
iv) Trading Account
v) Profit and Loss Appropriation Account.
The correct sequence in which the statements are prepared is?

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Q. The following are the balances extracted from the books of Raghunath Ji as on 31st March, 2017. From these balances, prepare his Trading and Profit & Loss Account and Balance Sheet as at that date:

	Dr. (₹)	Cr. (₹)
Opening Stock	12,000
Purchases	40,000
Sales		86,000
Discount		400
Sales Return	6,000
Buildings	50,000
Debtors	16,000
Salaries	2,400
Office Expenses	1,200
Wages	10,000
Purchase Return		4,000
Interest		800
Travelling Expenses	400
Fire Insurance Premium	800
Machinery	20,000
Carriage on Purchases	700
Commission	400
Cash in hand	2,300
Rent and Taxes	1,800
Capital		62,000
Creditors		10,800
	1,64,000	1,64,000

Adjustment:-
1. Closing Stock was valued at ₹ 16,000.
2. Wages ₹ 2,000 and salaries ₹ 1,200 are outstanding.
3. Rent for two months at the rate of ₹ 500 per month is outstanding.
4. Depreciate Buildings by 5% and machinery by 10%.
5. Prepaid Insurance ₹ 200.

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Section 227(2) of the Companies Act, requires the auditor to give his report to the members of the company on certain matters. Which of the following is not included in the given?

Section $227 (2)$ of the Companies Act, requires the auditor to give his report to the members of the company on certain matters. Which of the following is not included in the given?