Final Accounts Companies

Preparation of Financial Statements

Schedule - III Part I (Balance Sheet)
Statement of Financial Position of a Company (Vertical Balance Sheet)
as at ……………….
Current Previous
Note
Details Year Year
#
₹ ₹
Equity and Liabilities (i.e., Sources of Funds)
1. Shareholders’ Funds OR Equity
(a) Share Capital (i.e., Equity and Preference Share) 1
(b) Reserves and Surplus (Less Miscellaneous Expenditures) 2
(c) Money received against share warrants
2. Share Application Money Pending Allotment
3. Non-Current Liabilities OR Long-term Liabilities OR Debts
(a) Long Term Borrowings (i.e., Debentures, Loans) 3
(b) Long Term Provisions (i.e., Deb. Red. Premium & Provision for Employees 4
Benefits, PF)
(c) Deferred Tax Liabilities (i.e., Taxes on Accounting Income – Taxes on
Taxable Income)
(d) Other Long-Term Liabilities (i.e., Trade & Other Payables)
4.Short term or Current Liabilities
(a) Short Term Borrowings (i.e., Bank O/D, Cash Credit) 5
(b) Trade and Other Payables (i.e., Sundry Creditors and Bills Payables) 6
(c) Short-Term or Other Current Provisions (i.e., Provision for Tax, Proposed 7
Dividend)
(d) Other Current Liabilities (i.e., Wages & Salary Due, Unclaimed Dividend, 8
etc.,)
Total xxxx xxxx
Assets (i.e., Applications/Uses of Funds)
1. Non-current Assets OR Long-Term Assets
(a) Property, Plant and Equipment (Land & Building, Plant & Machinery, Furniture, etc.,) 9
(b) Intangible Assets (Like Goodwill, Patents, etc.,) 10
(c) Investment Property
(d) Financial Assets (Non-current Investments) 11
(e) Deferred Tax Assets (i.e., Taxes on Taxable Income – Taxes on Accounting Income)
(f) Long-term Loans and Advances (i.e., Security deposits)
(g) Capital Work in Progress
(h) Intangible Assets under Development (Project in Progress)
(i) Other Non-Current Assets (i.e., Biological Assets Like Livestock)
2. Current Assets OR Short-term Assets
a. Current or Short-term Investments (i.e., Marketable Securities)
b. Inventories (i.e., Stock, Loose Tools, Stores and Spares) 12
c. Trade and Other Receivables (i.e., Sundry Debtors and Bills Receivables) 13
d. Cash and Cash Equivalents (i.e., Cash and Bank) 14
e. Short term Loans and Advances (i.e., Loans and Advance due by Directors, officers)
f. Other Current Assets (i.e., interest on investment, Prepaid Expenses)
Total xxxx xxxx
Hint: Revised Schedule VI has eliminated the debit balance of Profit and Loss A/c from the Assets. Under the new scheme it is to be shown under the head ‘Reserves
and Surplus’ in the Equity and Liabilities part of Balance Sheet. Similarly, Miscellaneous Expenditures such as loss on issue of shares and debentures, discount
on issue of shares and debentures, underwriting commission, preliminary expenses, etc., shall be written off from ‘Securities Premium’ (if it exists) or from
General Reserve or from Statement of Profit and Loss under the Reserves and Surplus.

Note No 1: Share Capital

(a) Authorized xxxx
(b) Issued and subscribed
-------- shares of Nu------ each xxxx
(c) Called up and paid up xxx
Less: Calls in Arrears xxx
xxx
Add: Share Forfeiture / Forfeited Shares A/c xxx
Share Capital xxxx

Note No 2: Reserves and Surplus

(a) Capital Reserves
Capital Reserve xxx
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 Final Accounts Companies
Capital Redemption Reserve xxx
(b) Revenue Reserves
1. Specific Reserve
Securities Premium xxx
Less: Preliminary Expenses (xxx)
Discount on Shares / Debentures (xxx)
Brokerage on Shares / Debentures (xxx)
Debenture Redemption Reserve xxx
Development Rebate Reserve xxx
Revaluation Reserve xxx
Share Options Outstanding A/c xxx
Dividend Equalization Fund xxx
Workmen’s Compensation Fund or Workmen’s Accident xxx
Fund xxx

2. General Reserve xxx

Reserve Fund xxx
Sinking Fund xxx
General Reserve xxx
Other Reserves, if any specify nature)
Surplus (i.e., balance in Statement of Profit and Loss A/c disclosing all
allocations and appropriations such as dividend, bonus shares and transfer xxx
to/from reserves, etc.) xxx
Add: Profit and Loss A/c (brought forward from last year) xxxx
(xxx)
Less: Interim Dividend (xxx)
Proposed Dividend (xxx)
Dividend Tax (xxx) xxx
Reserves & Surplus xxxx
Hint: Debit balance of statement of Profit and Loss shall be shown as a negative figure under the head ‘Surplus’. Similarly, the balance of ‘Reserves
and Surplus’, after adjusting negative balance of surplus, if any, shall be shown under the head, ‘Reserves and Surplus’, even if the resulting
figure is in the negative.

Note No 3: Long term Borrowings

(a) Bonds / Debentures xxx
(b) Term Loans (from banks and from other parties) xxx
(c) Loans and Advances from related parties xxx
(d) Deposits (Public or Fixed Deposits Accepted) xxx
(e) Deferred Payment Liabilities xxx
(f) Long term maturities of finance lease obligations xxx
(g) Other loans and advances (specify nature)
Long term borrowings xxxx

Note No 4: Long term Provisions

a) Provision for employee benefits like
i. Provident Fund xxx
ii. Any Employees Welfare Schemes xxx
iii. Workmen’s Compensation Fund xxx
b) Debenture Redemption Premium xxx
Long term borrowings xxxx

Note No 5: Short term Borrowings

(a) Loans Repayable by Demand (from banks and other parties - Bank xxx
O/d) xxx
(b) Loans and Advances from related parties xxx
(c) Deposits (Public or Fixed Deposits Accepted) xxx
(d) Other Loans and Advances if any specify nature
Short-term borrowings xxxx

Note No 6: Trade and Other Payables OR Accounts Payables (if due within 12 months)
(a) Bills Payables xxx
(b) Sundry Creditors xxx
Less: Common Debts xxx
xxx
Less: Provision for Discount on Creditors xxx xxx
Trade or Accounts Payables xxxx

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 Final Accounts Companies
Note No 7: Short Term or Current Provisions
a) Provision for tax less advance tax xxx
b) Corporate Dividend Tax xxx
c) Proposed Dividend xxx
d) Provision for Contingencies xxx
e) Provision for Provident Fund xxx
f) Provision for Insurance, Pension & Similar Staff Benefit xxx
Schemes xxx
g) Other Provisions
Other Current Provisions xxxx

Note No 8: Other Current Liabilities

a) Rent outstanding xxx
b) Salary outstanding xxx
c) Interest accrued & due on loans or debentures xxx
d) Interest accrued but not due on borrowings xxx
e) Income Received in Advance i.e., calls in arrears xxx
f) Unpaid (unclaimed) dividends
g) Other payables (specify nature)
Other Current Liabilities xxxx
Hint: Share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head ‘Equity” and share application money to
the extent refundable i.e., the amount in excess of subscription or in case the requirement of minimum subscription is not met, shall be separately shown under
‘Other Current Liabilities’.

Note No 9: Property, Plant and Equipment (i.e., Tangible Fixed Assets)

1. Land xxx
2. Buildings xxx
3. Leaseholds xxx
4. Railway Sidings xxx
5. Plant & Machinery xxx
6. Office Equipment xxx
7. Furniture & Fittings xxx
8. Assets under lease xxx
9. Development of Property xxx
10. Livestock (Biological Assets) xxx
11. Vehicles, etc. xxx
Tangible Fixed Assets xxxx
Hint: A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals,
acquisitions through business combinations and other adjustments and the related ammonization and impairments losses/reversals shall be disclosed separately.

Note No 10: Intangible Assets

1. Goodwill xxx
2. Brands/Trademarks xxx
3. Computer Software xxx
4. Mining Rights xxx
5. Know-How xxx
6. Copy Rights, Patents and other intellectual property
rights, service and operating rights xxx
7. Mastheads and Publishing titles xxx
8. Recipes, formulae, models, designs and prototypes xxx
9. Licenses and franchise, etc. xxx
Intangible Fixed Assets xxxx

Note No 11: Non-Current Investments

1. Investment Property l xxx
2. Investments in Equity Instruments xxx
3. Investments in Preferences Shares xxx
4. Investments in Government or Trust Securities xxx
5. Investments in Debentures or Bonds xxx
6. Investments in Mutual Funds xxx
7. Investments in Partnership Firms xxx
8. Other Non-Current Investments (specify nature) xxx
Non-current Investments xxxx

Dr. Ramakrishnan P, Associate Professor, RBS, REVA University Page 3 of 6

 Final Accounts Companies
Note No 12: Inventories
1. Raw Materials xxx
2. Work in Progress xxx
3. Finished Goods xxx
4. Stock in Trade xxx
5. Stores and Spares xxx
6. Loose Tools xxx
7. Others (specify nature) xxx
Inventories xxxx
Note No 12: Trade and Other Receivables OR Accounts Receivables
(a) Bills Receivables xx
(b) Sundry Debtors / Book Debts xxx
Less: New Bad Debts xxx
Net Debts xxx
Less: New Provision (RBDD / RBDD / RDD) xxx xxx
Trade or Accounts Receivables xxxx
Note No 13: Cash and Cash Equivalents
1. Balances with banks xxx
2. Cheques, Drafts on hand xxx
3. Cash on hand xxx
4. Other (specify nature) xxx
Cash and Cash Equivalents xxxx
Hint: Bank deposits with more than 12 months maturity shall be disclosed separately. Earmarked balances with banks (say for unpaid dividend) shall be separately stated.

Note No 14: Short term Loans and Advances

1. Loan & Advances to Subsidiaries / Suppliers xxx
2. Loan & Advances to Partnerships xxx
3. Unexpired or Prepaid Insurance, Rent, Rates, Taxes, etc. xxx
4. Balances with Customs, Port Trust, Excise Authorities, xxx
etc. xxx
5. Advance Tax Paid or Tax Deducted at Sources
Cash and Cash Equivalents xxxx
Note No 15: Contingent Liabilities and Commitments (to the extent not provided for)
A. Contingent Liabilities
1. Claims against the company not acknowledged as debts
2. Guarantees
3. Other money for which the company is contingently liable
B. Commitments
1. Estimated amount of contracts remaining to be executed on capital account and not
provided for
2. Uncalled liability on shares and other investments partly paid.
3. Other commitments (specify nature)

Schedule - III Part II (Profit and Loss A/c)

Statement of Profit or Loss and other Comprehensive Income a Company (Nature of Expense Method)
for the year ended ……………….
Current Previous
Particulars Note # Year Year
₹ ₹
I. Revenue or Income
1. Revenue from Operations (i.e., Sales) 16 xxx xxx
2. Other Incomes (i.e., interest on investment) 17 xxx xxx
Total Revenue xxxx xxxx
II. Expenses
1. Cost of Materials Consumed xxx xxx
2. Purchase of Stock in trade 18 xxx xxx
3. Changes in Inventories (i.e., Stock Adjustment) 19 xxx xxx
4. Employee Benefits Expenses 20 xxx xxx
5. Finance Costs (i.e., interest on loan) 21 xxx xxx
6. Depreciation and Amortization Expenses 22 xxx xxx
7. Other Expenses 23 xxx xxx
Total Expenses xxxx xxxx
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 Final Accounts Companies
III. Profits
Net Profit before tax (NPBT) (Revenue – Expenses) xxx xxx
Less: Provision for tax xxx xxx
Net Profit after tax (NPAT) xxx xxx
Earnings per share (Profit after tax ÷ No. of Equity shares) xxx xxx

Statement of Profit or Loss and other Comprehensive Income a Company (Function of Expense Method)
for the year ended ……………….
Current Previous
Particulars Note # Year Year
₹ ₹
I. Revenue or Income - Revenue from Operations (i.e., Sales) 16 xxx xxx
Less : Cost of Goods Sold or Cost of Sales xxx xxx
Gross Profit xxxx xxxx
Add: Other Operating Incomes (i.e., Commission Received) xxx xxx
xxxx xxxx
Less: Operating Expenses xxx xxx
Operating Profits xxxx xxxx
Add: Non-Operating Incomes (i.e., interest on investment) xxx xxx
xxxx xxxx
Less: Non-Operating Expenses xxx xxx
Net Profit before Tax (NPBT) xxxx xxxx

Note No 16: Revenue from Operations

a) Sales of products both cash and credit (gross) xxx
Less: Return inwards xxx xxx
b) Sale of services (net) xxx
c) Other operating revenues i.e., sale of manufacturing scrap xxx
Less: Excise duty collected xxx xxx
Revenue from operations xxxx

Note No 17: Other Incomes

1. All types of incomes (e.g., Govt. Bonds, Debentures, and other securities xxx
2. Dividend received xxx
3. Discount received xxx
4. Rent received xxx
5. Transfer Fees xxx
6. Sundry creditors written back xxx
7. Profit or gain on sale of investments xxx
Less: Loss on sale of investments, if any xxx
8. Profit on sale of fixed asserts xxx
9. Excess provision for bed debts written back xxx
10. Prior period income xxx
Other Incomes xxxx

Note No 18: Purchase of Stock in trade / Net Purchases

1. Purchase of stock in trade xxx
Less: Return Outwards or Purchases Return xxx
xxx
Add: Carriage Inwards xxx
Purchase of stock in trade xxxx
Note No 19: Changes in Inventories
a) Finished Goods
Opening Stock xxx
Less: Closing stock xxx xxx

b) Work in Progress
Opening Stock xxx
Less: Closing stock xxx xxx

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 Final Accounts Companies
c) Stock in trade
Opening Stock xxx
Less: Closing stock xxx xxx
Changes in Inventories xxxx

Note No 20: Employees Benefits Expenses

a) Wages or Wages and Salaries xxx
b) Salaries or Salaries and Wages xxx
c) Staff Welfare Expenses xxx
d) Provident Fund, Gratuity Fund, etc. xxx
xxx
Add: Outstanding xxx
xxx
Less: Prepaid xxx
Employee Benefits Expenses xxxx

Note No 21: Financial Costs

a) Interest on Debentures xxx
Add: Accrued or Outstanding xxx xxx
b) Interest on Bank loan xxx
Add: Accrued or Outstanding xxx xxx
c) Interest on Bank Overdraft xxx
Add: Accrued or Outstanding xxx xxx
d) Interest by tax authorities xxx
Financial Costs xxxx

Note No 22: Depreciation and Amortization Expenses

1. Depreciation on Buildings xxx
2. Depreciation on Plant and Machinery xxx
3. Depreciation of Furniture and Fittings, etc. xxx
4. Goodwill written off xxx
Depreciation Expenses xxxx
Note No 23: Other Expenses
1. Carriage inwards and carriage outwards xxx
2. Consumption of spare parts xxx
3. Power and fuel xxx
4. Rent xxx
5. Commission xxx
6. Discount allowed xxx
7. Repairs to buildings, machinery, and other fixed assets xxx
8. Insurance less prepaid xxx
9. Administrative Expenses xxx
10. Telephone charges xxx
11. Printing and stationery xxx
12. Directors’ fees and Audit fees xxx
13. Delivery expenses xxx
14. Freight charges xxx
15. Rates and taxes xxx
16. Bad debts written off xxx
17. Provision for doubtful debts xxx
18. Advertisement xxx
19. Legal charges xxx
20. Trade expenses xxx
21. Office expenses xxx
22. Selling expenses xxx
23. General expenses xxx
24. Abnormal loss of stock xxx
Other Expenses xxxx

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