Nirman High School , Vastrapur

XII Commerce 10/08/2021

Chapter : 1 Financial Statement of a Company

Drafted by : Praful Sir (CBSE)

Based on Schedule III , Part I of Companies Act , 2013
Name of the Company ……
Balance Sheet as at 31st March, ….
Particulars Note No. Amount (₹)
I. EQUITY AND LIABILITIES
(1) Shareholders’ Fund
a) Share Capital
b) Reserves and Surplus
c) Money received against share warrants

(2) Share Applications Money Pending Allotment

(3) Non-current Liabilities

a) Long-term Borrowings
b) Deferred Tax Liabilities (Net)
c) Other Long-term Liabilities
d) Long-term Provisions

(4) Current Liabilites

a) Short-term Borrowings
b) Trade Payables
c) Other Current Liabilities
d) Short-term Provisions
Total
II. ASSETS
(1) Non-current Assets
a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(iii) Capital Work-in-progress
(iv) Intangible Assets under Development
b) Non-current Investments
c) Deferred Tax Assets (Net)
d) Long-term Loans and Advances
e) Other Non-current Assets

(2) Current Assets

a) Current Investments
b) Inventories
c) Trade Receivables
d) Cash & Cash Equivalents
e) Short-term Loans and Advances
f) Other Current Assets
Total
 Detail on heads and subheads of Balance Sheet

Particulars ₹
LIABILITIES
1) Share Capital
Authorised share capital
….Equity shares of ₹ …..each

Issued share capital

…..Equity shares of ₹ ….each

Subscribed share capital

….Equity shares of ₹ ….each
(i) Subscribed and fully paid up share capital :
….Equity shares of ₹ …each
(ii) Subscribed but not fully paid up share capital
…. Equity shares of ₹ … each
Less : Calls in arrears
(iii) Forfeited shares

2) Reserves & Surplus

• Capital Reserve
• General Reserve
• Securities Premium Reserve
• Debenture Redemption Reserve
• Investment Fluctuation Reserve
• Capital Redemption Reserve
• Revaluation Reserve
• Workmen compensation Fund
• Dividend Equalisation Fund
• Surplus in Statement of Profit & Loss
• Share option outstanding Account

3) Money received against share warrant

4) Share Application Money Pending Allotment

5) Long-term Borrowings
• Debentures
• Long-term Loans or term loan
• Bond
• Public Deposits
• Long-term Loans and advances from related parties
6.Deferred Tax Liabilities

7.Other Long-term Liabilities

• Premium on redemption of debentures
• Premium on redemption of preference shares
8.Long-term Provisions
• Provisions for employee benefits i.e. Provident fund , gratuity
fund , Pension Fund etc.
• Provision for workmen compensation claim
• Provision for warranties
• Workers’ profit sharing fund
• Workers’ savings account

9.Short-term borrowings
• Short-term loans from bank ( Loan repayable on demand )
• Bank overdraft & Cash Credit .

10.Trade Payables
• Creditors
• Bills Payables

11. Other Current Liabilities

• Outstanding expenses
• Advance income received
• Unclaimed dividend / Unpaid dividend
• Calls in advance
• Interest unpaid on Calls in advance
• Interest accrued but Not Due on Debentures
• Debentures with maturity period in current financial year
12. Short -term Provisions
• Provision for Tax
• Proposed dividend
 ASSETS
1) Fixed-Assets : Tangible
• Land & building
• Plant & Machinery
• Furniture & Fixtures
• Vehicles
• Tools & equipments
• Lease hold asset
• Office Equipments

2) Fixed-Assets – Intangible
• Goodwill
• Patents
• Trademark
• Copyright
• License
• Computer Software
• Franchise
• Mining Rights

3) Non-current Investments ( holding period more than 12 months )

• Investment in property
• Investment in Equity Instruments
• Investment in Preference Shares
• Investments in Government or Trust Securities
• Investment in Debentures or Bonds
• Investment in Mutual Funds
• Fixed deposits with bank ( for more than 12 months )
• Provident Fund investments
• Debenture redemption investment fund ( for more than 12
months )
• Shares in Quoted companies

4) Deferred Tax Assets

5) Long-term Loans and Advances

• Telephone deposit
• Electricity deposit
 • Custom deposit
• Loan to employee ( for more than 12 months )
• Capital advances ( for purchase of capital goods such as plants )

6) Other Non-Current Assets

• Discount on issue of debentures ( to be written off after 12
months )
• Advertisement campaign expenditure ( to be written off after 12
months )
• Research and development expenditure ( to be written off after
12 months )

6) Current Investment ( holding period less than 12 months )

• Investments in Equity instruments
• Investments in Preference Shares
• Investments in Government or Trust Securities
• Investments in Debentures or Bonds
• Investments in Mutual Funds

7) Inventories
• Stock of Raw material
• Stock of Work-in-progress
• Stock of Finished goods
• Stock-in-trade
• Loose Tools
• Stores and spares
• Consumable Stores
• Goods in transit

8) Trade Receivable
• Debtors
• Bills Receivables

9) Cash & Cash Equivalent

• Cash on hand
• Bank Balance
• Cheques & drafts on hand
10) Short-term Loans and Advances
• Advances to suppliers ( for less than 12 months )
• Loan advanced for less than 12 months
• Advance recoverable in cash

11) Other Current Assets

• Prepaid expenses
• Accrued income
• Unamortized balances of losses ( to be written off within 12
months )

Based on Schedule III , Part II of Companies Act , 2013

Name of the Company ……
Statement of Profit and Loss
For the year ending 31st March, ….
Particulars Note No. Amount (₹)
I. Revenue from Operations
II. Other income
III. Total Revenue ( I + II )
IV. Expenses :

a) Cost of Material Consumed

b) Purchase of Stock-in-Trade

c) Changes in Inventories of Finished Goods

( Opening Stock – Closing Stock )

d) Employees Benefits Expenses

e) Finance Costs

f) Depreciation and Amortization Expenses

g) Other Expenses

Total Expenses
V. Net Profit before Tax
VI. Less : Tax
VII. Net Profit after Tax
 Detail on heads and subheads of Balance Sheet
Particulars ₹
1. Revenue from Operation

For trading company

• Sales
Less : Sales Return
• Sale of scrap

For Financing company

• Interest earned on fixed deposits with bank
• Dividend earned on securities

2.Other Incomes
For Trading company
• Interest and Dividend received
• Bad debt recovered
• Profit on sale of assets
• Interest earned on fixed deposits with bank
• Dividend earned on securities

3. Cost of material consumed

• Opening stock of raw material + Purchase of raw material + Direct
expense incurred on purchase of raw material – closing stock of raw
material

4. Purchases of Stock-in-Trade

5.Change in inventories
• Opening Stock – Closing Stock

6.Employee benefit expense

• Salaries & wages
• Bonus , Commission etc paid to employees
• Staff welfare expenses
• Contribution to Provident Fund
• Leave encashment
7.Finance Cost
• Interest on debentures or bond
• Interest on loan or public deposit
• Interest on bank overdraft
• Interest on short-term loan
• Discount on issue of debenture
• Loss on issue of debenture

8. Depreciation and Amortization

• Depreciation on Fixed Assets
• Goodwill , Patents , Trademark etc. written off
• Loss on issue of debenture written off
• Advertisement campaign expenses written off

9. Other Expenses
• Postage
• Stationery
• Rent
• Audit Fee
• Office and administration expenses
• Sales expenses
• Bad debt written off
• Insurance premium paid
• Repairs to building & machineries
• Loss on sale of investment or fixed assets

BEST WISHES FROM PRAFUL SIR

“ Believe in yourself , you are born to top “