FINANCIAL STATEMENTS AS PER NEW SCHEDULE III ,COMPANY ACT 2013 (BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS)

THE COMPANIES ACT 2013: SCHEDULE III

The presentation of financial statements of companies registered under the companies Acts is now governed by schedule III of companies Act 2013.The format is same as per schedule VI of the companies Act 1956.

Identifiable difference from previous format

  • only one format has been prescribed in earlier there were two alternatives formats.
  • PROFIT AND LOSS ACCOUNT was renamed as STATEMENT OF PROFIT AND LOSS.
  • The 'liabilities' side stand was renamed as "Equity and Liabilities"
  • In the statement of profit and loss, the threshold level for disclosure of expenditure items has increased from Rs. 5,000 to Rs. 1,00,000.
  • remaining changes are very minute. 

FOLLOWING IS THE FORMAT OF BALANCE SHEET AS PER SCHEDULE III

SCHEDULE III IN EXCEL FORMAT


BALANCE SHEET - CURRENT AND NON-CURRENT CLASSIFICATION

Current assets

  • The classification of line items in balance sheet is divided in two categories-(i)'Equity and Liabilities'(ii) 'Assets'
  • An asset is classified as a current asset when it satisfies following conditions:
          1) It is expected realised with 12 months after reporting date.
          2) It is expected realised with in normal operating cycle.
          3) It is held primarily for the purpose of being traded or sale.

Non-Current assets

All assets other than current assets are treated as non-current assets.

FOLLOWING IS THE FORMAT OF STATEMENT OF PROFIT AND LOSS 

PROFIT AND LOSS AS PER COMPANY ACT 2013

     

Break up of items of revenue , purchase:-

  • Break up of each of the following items into broad heads shall be given
        1) Revenue from sale of goods.
        2) Gross income from services rendered.


  • In case of Purchase
         1) Raw material consumed
         2) Purchase of stock in trade
         3) Work in progress

  • General requirements for separate disclosure
        Any item of income or expenditure which exceeds one percent of the               revenue from operations or Rs.1,00,000/- which ever is higher shall be             disclosed separately.



FOLLOWING IS THE FORMAT OF CASH FLOW STATEMENT

SCHEDULE III OF COMPANIES ACT 2013

TO DOWNLOAD EXCEL FORMAT OF NEW SCHEDULE III ,CLICK  BELOW LINK

SCHEDULE III BALANCE SHEET FORMAT IN EXCEL

Comments

  1. AbirSeptember 13, 2015 at 9:47 AM

    Thanks

    ReplyDelete
  2. UnknownMarch 11, 2016 at 1:46 AM

    When I was in my high school so I was unable to find what was in Balance sheet but one day my accounts teacher Mr. Richards made a sitting with me and it was I remember two hours sitting in which he taught me all the basics of essayontime's blog in a Balance sheet and due to him, I am one of the best brokers in the market.

    ReplyDelete
  3. UnknownNovember 9, 2016 at 10:52 PM

    Waw its too gud thanks

    ReplyDelete
  4. UnknownOctober 13, 2017 at 6:20 PM

    lOSS ON jv CAN IT BE ADJUSTED IN RESERVES DIRECTLY OR TO BE WRITTEN OFF THRU P & L ACCOUNT

    ReplyDelete
  5. AshJanuary 29, 2022 at 9:54 PM

    Where we put miscellaneous expenses in Part I ie Balance Sheet.

    ReplyDelete

Post a Comment

Popular posts from this blog

AMALGAMATION :- JOURNAL ENTRIES IN THE BOOKS OF TRANSFEROR AND TRANSFEREE COMPANY

ACCOUNTING FOR AMALGAMATION PART-II Amalgamation means the liquidation of one or more companies and transfer of business of liquidated entities to another entity. There may be amalgamation either transfer of two or more undertakings to an existing company or new company. In the part -1 CLICK HERE FOR PART - I  Accounting for amalgamation we learnt about nature of amalgamation and method of accounting, now we are going to learn journal entries in the event of amalgamation. JOURNAL ENTRIES IN BOOKS OF TRANSFEROR COMPANY AND TRANSFEREE COMPANY IN THE BOOKS OF TRANSFEROR COMPANY(SELLING COMPANY) Accounting standard 14 is not applicable for selling company. Accounting is done with the objective of closing books of accounts and simultaneous determination of profit or loss on closing books of accounts.
CONTINUE READING »

JOURNAL ENTRY FOR SALARY (including allowance and deductions)

Journal entry for Salary: - Salary paid company includes allowances and deductions. Allowances are many types I am giving you some examples: - Types of allowances:- Dearness Allowance : - It is a cost of living adjustment allowance paid to employees in India. It is calculated as a percentage of basic salary to moderate the impact of inflation on employees. The DA vary according to areas (whether rural or urban) House Rent Allowance : - It is given by employer to the employee to meet the rent expense. Performance Allowance : -It is given to employee when they achieve the target given by the employer. Transport Allowance : -It is given to employee in order to meet the expense to come to office from employee residence. Children Education Allowance : -It is paid for education of employees children. Medical Allowance : -It is given to employees to medical expenses. Uniform Allowance : -It is given to employees for the expenditure. incurred on purchase or main
CONTINUE READING »