Balance Sheet of Companies

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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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Balance Sheet of Companies

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