Balance Sheet of Companies
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Transcript of Balance Sheet of Companies
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7/31/2019 Balance Sheet of Companies
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10/17/12
BALANCE SHEET OF
COMPANIES
A PRESENTATION BY:
AJITH SEBASTIANHARSH MITTAL
KAILASH SRINIVASANKARTIK KULHARI
NOEL JOSEPH WILLIAMSWATI GOSWAMIUPASANA SINGH
USHMA BHANDARI
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INTRODUCTION
According to AICPA* ,Balance sheet is a tabular statementof summary of balances (debits andcredits) carried forward after an actualand constructive closing of books of account and kept according to theaccounting principles
Format of balance sheet is as perPart I of Schedule VI in
Companies Act of 1956.
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MARSHALLING
Arranging the balance sheet according
to a particular sequence or order.
METHODS OF MARSHALLING Liquidity Preference Method
Rigidity Preference Method
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FEATURES OF BALANCE
SHEET It is a statement but not an account It is a summary of unallocated
balances
It acts as a buffer between the
transactions of two consecutive
accounting periods
It acts as a resource statement
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PURPOSE OF BALANCESHEET
Disclosure of values and natures of
assets and liabilities
Information about solvency Information about liquidity
Information about other necessaryaspect
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SHAREHOLDERS FUNDS
a) the number and amount of shares authorized;
b) the number of shares issued,subscribed and fully paid, andsubscribed but not fully paid;
c) par value per share;d) a reconciliation of the number
of shares outstanding at thebeginning and at the end of the period;
e) shares in the company heldby its holding company or itsultimate holding company orby its subsidiaries orassociates;
a) Capital Reserves;b) Capital Redemption
Reserves;c) Securities Premium Reserve;d) Debenture Redemption
Reserve;e) Other Reserves (specify the
nature of each reserve andthe amount in respectthereof);
f) Surplus i.e. balance instatement of Profit & Loss
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Share application money pending
allotment not to be presented withinShareholders funds as a separateline item.
It will not come in current liabilityalso .
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a) Loans repayable ondemand
b) Loans and advancesfromsubsidiaries/holdingcompany/associates/business ventures.
c) Demand deposits.d) Other loans and
advances (specifynature).
The amounts shown underTrade Payables shallinclude the amounts due inrespect of goods purchasedor services received in thenormal course of business.
a) Current maturities of
long-term debt;b) Current maturities of
finance leaseobligations;
c) Interest outstandingand due onborrowings;
d) Unpaid dividend ;
a) Provision foremployee benefits.
b) Others (specifynature).
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Any other non-current liabilities(specify nature)
These are provisionscreated on fixed
assets. Ex. Provision fordepreciation
An account on a company'sbalance sheet that is aresult of temporary
differences between thecompany's accounting and
tax carrying values, theanticipated and enacted
income tax rate, andestimated taxes payable
a) Bonds/debentures.b) Term loansc) Public deposits.d) Loans and advances
fromsubsidiaries/holdingcompany/associates/business ventures.
e) Other loans andadvances (specifynature).
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Non- Current Assets
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a) Tangible Assetsb) Intangible Assetsc) Capital work in
progressd) Intangible assets
underdevelopment
a) Investment property;b) Investments in
Government or trustsecurities;
c)
Investments in units,debentures or bonds;d) Other non-current
investments (specifynature)
a) CapitalAdvances;
b) SecurityDeposits;
c) To directors /subsidiaries /associates /businessventures loansand advances tospecifyse aratel
a) Long Term Trade
Receivables;b) Others(specify
Tax paid inadvance based
upon the
estimatedincome
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a) Investments ingovernment or trustsecurities;
b) Investments in shares,units, debentures orbonds;
c) Other investments(specify nature).
a) Raw material;b) Work-in-progress;c) Finished goods;d) Stock-in-trade;e) Stores and spares;f) Loose tools;g) Others (specify
nature).
The amounts shown underTrade Receivables shall
include the amounts due inrespect of goods sold or
services rendered in the normalcourse of business.
a) Balances with banksb) Cheques, drafts on handc) Cash in handd) Others (specify nature)
a) Loans and advancesrelated parties ;
b) Others (specifynature).
This is a residual heading,which incorporates currentassets that do not fit into anyother asset categories.
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Major Changes in the RevisedBalance Sheet
Changes in the Liabilities Side Sources of fund has been replaced
with equity and liabilities. Money received against share
warrants has been specifically
categorized as sub head underShareholders fund. Debit balance shall be shown as
negative figure under the headsur lus
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Major Changes Continued Share application money pending
allotment shall now be shownseparately under Shareholder
Funds. Liabilities will now be broadlyclassified as current liabilities andnon-current liabilities.
Deferred payment liabilities and loans& advances from related parties to beshown separately under the headlong term borrowings.
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Changes In the Assets Side
Change in nomenclature- applicationof funds has been replaced with
Assets. Fixed assets are to be furtherclassified as tangible and nontangible.
Current assets are to be shown underseparate head.
Sundry debtors have been namedtrade receivables.
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