A ca is the statutory auditor if a co. which owns a store dealing in computer equipment. During the year he purchased a computer from the store costing 25000. He did not make any payments for the same, but asked the co to adjust the same against the audit fees. Is the case of clause 1 of part 2 of schedule 2??
this is old question asked in nov 12 exams when old companies act was in existence with Rs 1,000 limit, that time icai applied company act on it and said that ca is indebted for amount exceeding 1,000 till the time adjustment happens hence disqualified
now in context of co act 2013
he is still indebted for Rs 25,000 but it is within limit of Rs 5,00,000 do it absolutely fine
in context of ca act
this case was never drafted keeping in mind ca act, clause 2 is intended to keep work and money sharing of ca in practice with few ethical people
now this case not work and money sharing , it is simply netting off receivable and payables so i dont think we should apply clause 2 here