MAGNETIC INK CHARACTER RECOGNITION (MICR)

MICR CODE

MAGNETIC INK CHARACTER RECOGNITION (MICR)

In MICR technology the information is printed on the instrument with a special type of ink which is made

up of magnetic material. On insertion of the instrument in the machine, the printed information is read by

the machine. MICR system is beneficial as it minimizes chances of error, clearing of cheques becomes

easy and transfer of funds becomes faster in order to facilitate operations.

MICR code consist of 9 digit

First three digit (1-3) denotes city and are same/identical first three digit of your pin

code

for example first three digit of Pin code of New Delhi =110 so first three digit of MICR code

of all the bank branches located in New Delhi must be 110.

4-6 digit denotes for Bank

each bank has given a three digit code,4-6 digit is= bank code eg. SBI code is "002"so 4-6

digit of MICR code all the the branches of SBI is "002" irrespective of location in the india.

(7-9)Last three digit denotes branch code,it is in serial wise ,means if delhi has only

one branch of SBI and its MICR code will be

110(FOR CITY) 002(FOR BANK) 001(FOR BRANCH) ie "110002001"

so if you are located in delhi & your client has given you a Micr code of the bank located in

New Delhi , doesn't begin with "110",you can easily tell him your Micr code is wrong.

HOW CAN I KNOW MY BANK BRANCH MICR CODE

1. From your bank branch

2. from your cheque book ??

3. excel work book link is given below for Micr code for almost all the branches located in

India.

from cheque book.

yes ,if your bank branch has a Micr code than it is also printed on your cheque book,check

your cheque book if there is a nine digit code and first three digit of the code=first three

digit of your pin code than you can have got your MICR code.

WHETHER ALL THE BRANCHES IN INDIA HAVE MICR CODE : NO

Is there any benefit for MICR code OTHER than ITR. : yes

now a days it is used by many organizations to send directly funds in customer account.

1. by mutual fund for sending sale receipt of the units to customer account

2.Refund of application money in shares.

3. Refund of taxes by other dept also.

4. Refund of application money for real state/plot by govt/private organization.

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Regards,
Mathew Joseph

IAS 1 Presentation of Financial Statements (revised 2003)

Effective Date :
Annual periods beginning on or after 1 January 2005.

Objective :
To set out the overall framework for presenting general-purpose financial statements, including guidelines for their structure and the minimum content.

Summary :
• Fundamental principles underlying the preparation of financial statements, including going concern assumption, consistency in presentation and classification, accrual basis of accounting, and materiality.
• Assets and liabilities, and income and expenses, may not be offset unless offsetting is permitted or required by another IFRS.
• Comparative prior-period information must be presented for amounts shown in the financial statements and notes.
• A complete set of financial statements should include a balance sheet, income statement, statement of changes in equity, cash flow statement, accounting policies and explanatory notes.
• The statement of changes in equity must show either:
- all changes in equity; or
- changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders.
• Financial statements generally to be prepared annually. If the date of the year end changes, and financial statements are presented for a period other than one year, disclosure thereof is required.
• Current/non-current distinction for assets and liabilities is normally required. In general 21 post-balance sheet events are not considered in classifying items as current or non-current.
• IAS 1 specifies minimum line items to be presented on the face of the balance sheet, income statement, and statement of changes in equity, and includes guidance for identifying additional line items.
• IAS 1 specifies minimum note disclosures. These must include information about:
- accounting policies followed;
- the judgements that management has made in the process of applying the entity’s accounting policies that have the most significant effect on the amounts recognised in the financial statements;
and
- the key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Interpretations SIC 29, Disclosure – Service Concession Arrangements

Disclosure is required if an entity agrees to provide services that give the public access to major economic and social facilities.

Welcome to Accounting Wisdom

Welcome to Accounting Wisdom. I am Mathew Joseph co-inventor of accounting wisdom.  Accounting wisdom’s vision is to create standards of excellence in the field of Accounting and Finance by providing an online free resources hub of accounting knowledge and wisdom from around the globe. Catering such a vision in not within the reach of one person or organization. To make our wings fly we give young financial, professional and aspirants like you the opportunity to share your experience, skill, knowledge and competence in the field of Finance, Law, Taxation, Governance and all other related fields.  Our ablility to give deliver excellence in the field of Accounting and Finance depends upon getting the right talent. You are part of that talent and we believe that you can make a real difference in the field of Accounting and Finance. So grab your seat belts tight and get ready for an exciting adventure in accounting.

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Mathew Joseph,
Co-inventor