During the audit of Good Bank Ltd., the auditors and the management had a certain difference of opinion as to the amount and the items which needs…
CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · May 2024
During the audit of Good Bank Ltd., the auditors and the management had a certain difference of opinion as to the amount and the items which needs to be disclosed under the head of contingent liabilities. However, apart from that, the auditors had observed the following: 79 agricultural loan accounts (guaranteed by Government of Delhi) amounting to 26 lakh were overdue for more than two years.93 (guaranteed by Government of India) agricultural loan accounts amounting to 32 lakh were overdue for more than two years.6 corporate loans accounts (guaranteed three each by Government of India and Government of Delhi) amounting to 29 lakh for each company were overdue for more than three and a half months. What is the total amount of loans that should be classified as NPA by Good Bank?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
113 lakh.
Topics: Special Features of Audit of Banks & Non-Banking Financial Companies
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