Unit 1: format of Financial Statement .pdf

Unit 1: format of Financial Statement .pdf

• 1.
  Schedule III (PartI & II) of the Companies Act, 2013, including notes (schedules) and adjustments Balance Sheet of ABC ltd. As on 31-03-20XX 1. EQUITY AND LIABILITIES Note No. Amount 1. Shareholders' Funds a. Share Capital 1 b. Reserves & Surplus 2 c. Share Warrant 2. Share Application Money 3. Non-Current Liabilities a. Long-term borrowings 3 b. Deferred Tax Liabilities (Net) c. Other Long-Term Liabilities d. Long-term Provisions 4. Current Liabilities a. Short-term borrowings b. Trade Payables 4 c. Other Current Liabilities 5 d. Short-term Provisions 6 Total (1+2+3+4) II. ASSETS 1. Non-Current Assets a. Fixed Assets 7 (i) Tangible (ii) Intangible b. Non-Current Investments c. Long Term Loans & Advances d. Other Non-Current Assets 2. Current Assets a. Current Investments b. Inventories 8 c. Trade Receivables 9 d. Cash & Cash Equivalents 10 e. Short-Term Loans & Advances f. Other Current Assets Total (1+2)
• 2.
  Name of theCompany…… Statement of Profit and Loss For the year ending 31-03-20XX Particulars Note No. Amount Amount I. Revenue from Operations Sales – Returns (Debit side) XXX II. Other Incomes XXX III. Total Revenue XXX IV. Expenses: Purchase (Purchase – returns Cr side) XXX Changes in stock (Opening stock – closing stock) XXX Direct Expenses XXX Employee Benefit Expenses 11 XXX Finance Cost 12 XXX Depreciation & Amortisation 13 XXX Other Expenses 14 XXX Total Expenses XXX V. Profit Before Tax (PBT) XXX VI. Less: Provision for Tax XXX VII. Profit After Tax (PAT) XXX Balance Sheet Notes (Schedules) Adjustments Shareholders’ Funds 1. Share Capital Authorized, Capital ……….share of Rs. Each XXX Issued, Subscribed, Called-up ………………….share of Rs. Each XXX Less: Calls in arrears XX Total = XXX 2. Reserves and Surplus 1. General/Reserve, fund XXX Add: Transfer of reverse fund XXX Add: Securities premium XXX 2. P/L Account Opening Balance XXX Add/Less Statement P/L A/c XXX XXX 3. Amount Available to Appropriation a/c Less: Proposed dividend (Share capital x percentage) XXX Less: Interim dividend XXX Less: Transfer of reverse fund XXX
• 3.
  Total Reserves andSurplus XXX Share Application Money Pending Allotment Not used unless company issued shares pending allotment Non-Current Liabilities 3. Long-term Borrowings Debentures/ secured or term loans/Bonds Deferred Tax Liability Due to timing differences (long term tax liability) Other Long-Term Liabilities Deposits classified under Borrowings would include deposits accepted from public and inter corporate deposits which are in the nature of borrowings Loans and advances from related parties are required to be disclosed. Long-Term Provisions Provision for employee benefits beyond 12 months: Gratuity/Leave encashment/ Pension obligations Other provisions that are long-term in nature Current Liabilities Short-term Borrowings Borrowings that are repayable within 12 months. Loans repayable on demand From banks (including cash credit, overdraft)/From other parties Short-term loans and advances from related parties/ Commercial paper Other short-term borrowings such as: Deposits/ Short-term finance from financial institutions/ Inter-corporate borrowings repayable within 12 months 4. Trade Payables Creditors/Bills Payable/ Outstanding expenses 5. Other Current Liabilities Expenses payable, TDS, GST, Salary outstanding Outstanding expenses / debenture interest (given in adjustment) All accruals shown here 6. Short-term Provisions Provision for Tax Provision for Dividend Other Matching P&L provision II. ASSETS Non-Current Assets 7. Fixed Assets (i) Tangible Particulars Gross Block Depreciation Net Block Plant & Machinery/ XXX Less: XXX XXXX Furniture & Fixtures/ Premises/ Land & building/ Office equipment/
• 4.
  vehicles (ii) Intangible ParticularsGross Block Depreciation Net Block Goodwill/patent/ Copyrights XXX Less: XXX XXXX / trademark Non-Current Investments Investment in Property, Equity/preference share, govt or trust securities, debenture/bonds, mutual funds, other non-current investment Long Term Loans & Advances Long-term staff loans, long-term advances to suppliers/ companies etc Other Non-Current Assets Preliminary Expense ( old balance – write off) Current Assets Current Investments Any investment made by the company that are expected to be converted into cash within a year or within the company’s operating cycle. 8. Inventories Stock-in-trade/ store and spares/ loose tools/ Closing stock. 9. Trade Receivables Bills receivable/ Debtors XXX Less: Bad debts ( given in adjustments) XXX XXX Less: New Provision of bad debts/ reserve for bad debts/doubtful debts XXX XXX ( given in adjustments) 10. Cash & Cash Equivalents Cash at bank/hand Short-Term Loans & Advances Advances to suppliers for goods/services Staff loans repayable within a year/ Security deposits refundable within a year Other Current Assets Prepaid expenses (given in adjustment) Statement of Profit and Loss Account 11. Employee benefit expense Salaries and Wages/ Staff Welfare Expenses/ Bonus and Incentives, Any other employee-related cost . 12. Finance Cost Interest Expense- long-term loans, debentures, bonds 13. Depreciation & Amortisation Depreciation → The systematic allocation of the depreciable amount of a tangible asset (like machinery, buildings, vehicles) over its useful life. Amortisation → The systematic allocation of the depreciable amount of an intangible asset (like patents, software, trademarks) over its useful life. 14. Other expenses Administrative & General Expenses Selling & Distribution Expenses Advertisement & sales promotion Commission to agents Freight & forwarding charges
• 5.
  Packing material Miscellaneous OperatingExpenses Bank charges (non-finance related) Other expenses Insurance expenses Preliminary expenses (write off ) Less: Any prepaid expense (insurance, Ads exp etc.) Bad debts (Old ) XXX Add: New written off (given in adjustment) Add: New Provision of bad debts/ reserve for bad debts/doubtful debts XXX (given in adjustments) Less: Old or Opening Provision of bad debts/ XXX reserve for bad debts/doubtful debts (given in the problem or trial balance) XXX Draft format: If any transaction/adjustment is missing, you can modify