Isc Accounts Company Final Accounts

Rohit Agarwal 9883248954

Chapter 13 : Schedule VI Balance Sheet as at 31st March 2009 Liabilities

Rs.

SHARE CAPITAL: Authorised …Equity shares of Rs…. Each …Preference shares of Rs…. Each Issued: …Equity shares of Rs…. Each …Preference shares of Rs…. Each Subscribed: …Equity shares of Rs…. Each Less: Calls Unpaid Add: Forfeited Shares …Preference shares of Rs…. Each RESERVES AND SURPLUS: Capital Reserve Capital Redemption Reserve Securities Premium Other Reserves (DRF, Profit and Loss Account SECURED LOANS: Debentures Loans and Advance from Banks Loans and Advance from Subsidiaries Other Loans and Advances Interest Accrued and due on such loans UNSECURED LOANS: Fixed Deposits Loans and Advances from Subsidiaries Short Term Loans and Advances Other Loans and Advances Interest Accrued and due on such loans CURRENT LIABILITIES & PROVISION: A. Current Liabilities Acceptances (i.e. Bills payable) Sundry Creditors Outstanding Expenses Unclaimed Dividend Interest Accrued but not due on loans Short Term Loans and Advances Calls in advance B. Provisions: For Taxation For Dividends For Contingencies For Provident Fund Schemes

Assets

Rs.

FIXED ASSETS: Goodwill Land Building Leasehold Premises Railway Sidings Plant and Machinery Furniture Patents and Trademarks Live Stock Vehicles INVESTMENTS: Government or Trust Securities, Shares, Debentures, Bonds CURRENT ASSETS, LOANS AND ADVANCES: (A) Current Assets: Interest Accrued Stores and Spare parts Loose Tools Stock in Trade Work in Progress Sundry Debtors Less: Provision for Doubtful Debts Cash and Bank balances (B) Loans and Advances: Advances and Loans to Subsidiary Bills Receivable Advance Payments (i.e. Prepayments) Deposits with authorities MISCELLANEOUS EXPENDITURE: Preliminary Expenses Discount on Issue of Shares and Debentures Brokerage on Issue of Shares & Debentures Underwriting Commission Deferred Expenses PROFIT AND LOSS ACCOUNT (Debit Balance: if any)

Note: A footnote to the Balance Sheet may be added to show the contingent liabilities.

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Rohit Agarwal 9883248954 ¾ Statutory books to be kept by Company on accrual basis and on double entry system of accounting: 1. 2. 3. 4. 5.

Cash Book Purchases Day Book Sales Day Book Purchases Returns Book Sales Returns Book ¾Financial statements are the basic and formal annual reports through which the corporate management communicates financial information to its owners and various other external parties which includeinvestors, tax authorities, government, employees, etc. ¾There are two main financial statements. They are: (1) Balance Sheet; (2) Income Statements. ¾The prescribed form of the Balance Sheet is given in Part I of Schedule VI of the Companies Act, 1956. ¾The Companies Act has laid down two forms of the Balance Sheet known as: Horizontal & Vertical. ¾The income statement is prepared according to Part II of Schedule VI of the Companies Act, 1956. ¾Difference Between Company’s Balance Sheet & Partnership Firm’s Balance Sheet: Company’s Balance Sheet Partnership Firm’s Balance Sheet

Authorized Capital Issued Capital Subscribed Capital Called Up Capital Paid Up Capital

Basis difference Meaning

Unissued Capital Unsubscribed Capital

Uncalled Capital (Reserve Capital)

Calls in Arrear

of

Provisions

Reserves

Provision is created for some specific Reserve may be created for a specific object for which it is created. purpose and it may not be created for a specific purpose. Charge Vs. A provision is a charge against profit i.e. it A reserve is an appropriation of profit will be created even though there is no i.e. it will not be created or the amount Appropriation profit. will not be transferred to any reserve if there is no profits. Time of creation A provision is created before ascertaining A reserve is created after ascertaining the profit or los of a business. the profit. Object The object of creating provision is to make A reserve is created to strengthen the arrangement for any known liability. financial position of the business and to increase in the working capital. Provision can be utilised only for the Reserve can be used in the payment of Utilisation purpose for which it is meant. any liability or loss. Provision cannot be utilised for declaration Reserves can be used for declaration of Distribution of dividends. dividends. Disclosure in It is shown as deduction form the value of Reserves are always shown as a separate assets concerned on the assets side of the item under the head ‘Reserve and Balance Sheet Balance Sheet. However, it may be shown Surplus’ on the liabilities side of the on the liabilities side also. Balance Sheet. Amount of provision cannot be invested Reserve can be invested outside the Investment outside. It always remains in the business. business but in that cased it is called outside business fund.

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Rohit Agarwal 9883248954 XYZ Co. Pvt Ltd. Dr. Profit & Loss Appropriation Account for the year ended 31st March 2008. Cr Particulars Details Amt Particulars Details Amt Rs. Rs. By Balance b/f (Cr.) Rs. Rs. To Balance b/f (Dr.) By Net profit b/f To Net loss b/f By Balance c/f (Bal. Fig) To Proposed Dividend - On Equity Shares - On Preference Shares To Interim Dividend - On Equity Shares - On Preference Shares To General Reserve To Balance c/f (Bal. Fig)

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