Provisional, Estimated and Projected

Balance Sheet
Provisional Balance Sheet: - Provisional Balance Sheet is an unaudited balance sheet. It
is prepared on the basis of Past data i.e. for the period which is already completed.

Eg. : Suppose our balance sheet as on 31st March 2020, which is not yet finalized, but
our banks or other institutions ask for balance sheet, then we provide them a
Provisional balance sheet.

*It is a balance sheet without provisions and adjustments.

Estimated Balance Sheet: - Estimated Balance Sheet is prepared for future Data (for
which period is started but not completed) on basis of projection i.e. for the period
which already started but not completed.

Eg. : Suppose, for you CC limit extension or taking fresh loans, your Bank is asking for
your balance sheet for current year i.e. still not completed. In such case, on projection
(on the basis of past performance) we provide our bank an estimated balance sheet.

Projected Balance Sheet: - Projected Balance Sheet is prepared for future Data on the
basis of projection i.e. for which period is not started.

Example: - Suppose on 11th July 2020, a person prepares balance sheet for periods:-

01/04/2020 to 30/06/2020, 01/04/2020 to 31/03/2021 and 01/04/2021 to

31/03/2022 , then balance sheets are as follows: -

Preparation of Balance Sheet for the Period 1st April 2020 to 30th June 2020 is
Provisional Balance Sheet.

Preparation of Balance Sheet for the Period 1st April 2020 to 31st March 2021 is
Estimated Balance Sheet.

Preparation of Balance Sheet for the Period 1st April 2021 to 31st March 2022 Projected
Balance Sheet.

By : Ratan Sarraf