Can a motor car or computer be classified under "furniture and fixtures" and rent under "rates and taxes"? The formats of balance sheet and income and expenditure account, prescribed under Schedules VIII and IX of The Bombay Public Trust Act, say they ought to be classified as such!
These are just two instances. There are more such blunders, which, not only the charity commissioner's office, but also the auditor's insists on following.
It appears the formats, which are totally outdated, were designed by someone with no knowledge of the basic principles of accounting. They have never been modified or revised since their introduction decades ago. The formats need a major overhaul to make them comparable with those prescribed under the Companies Act.
Will the authorities concerned wake up to the task, even if belatedly?
V V Vijayan, Mumbai
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