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Part I of Schedule VI

The prescribed form of the Balance Sheet is given in Part I of Schedule VI of the Companies Act, 1956. The Companies Act has laid down two forms of the Balance Sheet known as : (i) Horizontal form (ii) Vertical form

Format Of Summarised Balance Sheet (Horizontal Form) Schedule VI Part I
Balance Sheet of …. CO.LTD. As at … Figures Figures Assets for the for the current previous year year Rs. Rs. 1. Fixed Assets 2. Investments 3. Current Assets, Loans and Advances (a) Current Assets (b) Loans and Advances 4. Miscellaneous Expenditure 5. Profit and Loss A/c

Figures for the previous year Rs.

Liabilities

Figures for the current year Rs.

1. Share Capital 2. Reserves and surplus 3. Secured Loans 4. Unsecured Loans 5. Current Liabilities and Provisions (a) Current Liabilities (b) Provisions

The format of the detailed Balance Sheet of a company in a horizontal form is given below: FORMAT OF THE DETAILED BLANCE SHEET IN A HORIZONTAL FORM Horizontal Form of Balance Sheet Balance Sheet of ….(Name of the Company) as on ….. Figures Liabilities Figures Figures Assets for the for the for the previous current previous year year year Rs. Rs. Rs. Share Capital Fixed Assets: Authorised Goodwill …shares of Rs…. Each Land Preference Building Equity Leasehold Premises Issued: Railway Sidings

Figures for the current year Rs.

Preference Equity Less: Calls Unpaid: Add: Forfeited Shares Reserves and Surplus: Capital Reserve Capital Redemption Reserve Securities Premium Other Reserves Profit and Loss Account Secured Loans: Debentures Loans and Advance from Banks Loans and Advance from Subsidiary Companies Other Loans and Advances Unsecured Loans: Fixed Deposits Loans and Advances from Subsidiaries Companies Short Term Loans and Advances Other Loans and Advances Current Liabilities and Provisions: A. Current Liabilities Acceptances Debentures Sundry Creditors Outstanding Expenses B. Provisions: For Taxation For Dividends For Contingencies For Provident Fund Schemes For Insurance, Pension and Other similar benefits

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 Cash and Bank balances (B) Loans and Advances: Advances and Loans to Subsidiary Bills Receivable Advance Payments Miscellaneous-Expenditure: Preliminary Expenses Discount on Issue of Shares and other 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. Format of the Balance Sheet in vertical form Balance Sheet of …. As on …… Particulars Schedule Figures as at Figures as at Number the end of the end of current previous financial financial year year I. Source of Funds: 1. Shareholder’s Funds: (a) Share Capital (b) Reserves and Surplus 2. Loan Funds: (a) Secured loans (b) Unsecured loans Total(Capital Employed) II. Application of Funds 1. Fixed Assets: (a) Gross block (b) Less : depreciation (c) Net block (d) Capital work-in-progress 2. Investments: 3. Current Assets, Loans and Advances: (a) Inventories (b) Sundry Debtors (c) Cash and Bank Balances (d) Other Current Assets (e) Loans and Advances Less: Current Liabilities and Provisions: (a) Current liabilities (b) Provisions Net Current Assets 4. (a) Miscellaneous expenditure to the extent not written-off or adjusted. (b) Profit and Loss account (debit balance, if any) TOTAL

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

Part II of Schedule VI
Part II of Schedule VI lays down the disclosure requirements of the contents of balance sheet of which current assets, loans and advances are described below Current assets, Loans and Advances To make the fixed assets in a state of readiness to produce or provide goods and services, the company needs current assets to carry out business operations. These assets are held for consumption of for sale and are expected to be realized in cash during the normal operating cycle. Current assets include inventories, debtors, cash etc. Loans and advances refer to those assets which are held for a short term and are expected to be realized within one year. These include advance payments, loans to subsidiary companies etc. The sub headings- current assets as well as loans and advances must be shown separately under two sub-heads(a) Current Assets (b) Loans and Advances. Disclosure Requirements of Current Assets, Loans and Advances as per Part II of Schedule VI. A. Inventories I. Classification shall be made as: 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). II. Goods-in-transit shall be disclosed under the relevant sub-head of inventories.

B. Trade Receivables - The amounts shown under ‘Trade Receivables’ shall include the amounts due in respect of goods sold or services rendered in the normal course of business. (i) Trade receivables shall also be classified as: (a) To the extent secured, considered good; (b) Others, considered good;

(c) Doubtful.14 (ii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.

C. Cash and cash equivalents (i) Classification shall be made as: (a) Bank balances; (b) Cheques, drafts on hand; (c) Cash balance; (d) Cash equivalents – short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value; (e) Others (specify nature). (ii) (iii) (iv) (v) Earmarked bank balances (e.g. unpaid dividend) shall be separately stated. Balance with banks to the extent held as security against the borrowings, guarantees, other commitments shall be disclosed separately. Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated. Bank deposits with more than 12 months maturity shall be disclosed separately.

D. Short-term loans and advances (i) Loans and advances shall be classified separately as: (a) To subsidiaries/associates/business ventures; (b) To others (specify nature). (ii) The above shall also be sub-classified as: (a) To the extent secured, considered good; (b) Others, considered good; (c) Doubtful. (iii) Allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately.

E. Other current assets (specify nature).