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Chapter 13 : Schedule VI
Balance Sheet as at 31st March 2009
Liabilities Rs. Assets Rs.
SHARE CAPITAL: FIXED ASSETS:
Authorised Goodwill
…Equity shares of Rs…. Each Land
…Preference shares of Rs…. Each Building
Issued: Leasehold Premises
…Equity shares of Rs…. Each Railway Sidings
…Preference shares of Rs…. Each Plant and Machinery
Subscribed: Furniture
…Equity shares of Rs…. Each Patents and Trademarks
Less: Calls Unpaid Live Stock
Add: Forfeited Shares Vehicles
…Preference shares of Rs…. Each INVESTMENTS:
RESERVES AND SURPLUS: Government or Trust Securities, Shares,
Capital Reserve Debentures, Bonds
Capital Redemption Reserve CURRENT ASSETS, LOANS AND
ADVANCES:
Securities Premium
(A) Current Assets:
Other Reserves (DRF,
Interest Accrued
Profit and Loss Account
Stores and Spare parts
SECURED LOANS:
Loose Tools
Debentures
Stock in Trade
Loans and Advance from Banks
Work in Progress
Loans and Advance from Subsidiaries
Sundry Debtors
Other Loans and Advances
Less: Provision for Doubtful Debts
Interest Accrued and due on such loans
Cash and Bank balances
UNSECURED LOANS:
(B) Loans and Advances:
Fixed Deposits
Advances and Loans to Subsidiary
Loans and Advances from Subsidiaries
Bills Receivable
Short Term Loans and Advances
Advance Payments (i.e. Prepayments)
Other Loans and Advances
Deposits with authorities
Interest Accrued and due on such loans
MISCELLANEOUS EXPENDITURE:
CURRENT LIABILITIES & PROVISION:
Preliminary Expenses
A. Current Liabilities
Discount on Issue of Shares and Debentures
Acceptances (i.e. Bills payable)
Brokerage on Issue of Shares & Debentures
Sundry Creditors
Underwriting Commission
Outstanding Expenses
Deferred Expenses
Unclaimed Dividend
PROFIT AND LOSS ACCOUNT
Interest Accrued but not due on loans
(Debit Balance: if any)
Short Term Loans and Advances
Calls in advance
B. Provisions:
For Taxation
For Dividends
For Contingencies
For Provident Fund Schemes
Note: A footnote to the Balance Sheet may be added to show the contingent liabilities.
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 Rohit Agarwal 9883248954

¾ Statutory books to be kept by Company on accrual basis and on double entry system of accounting:
1. Cash Book
2. Purchases Day Book
3. Sales Day Book
4. Purchases Returns Book
5. Sales Returns Book
¾Financial statements are the basic and formal annual reports through which the corporate management
communicates financial information to its owners and various other external parties which include-
investors, tax authorities, government, employees, etc.
¾There are two main financial statements. They are: (1) Balance Sheet; (2) Income Statements.
¾The prescribed form of the Balance Sheet is given in Part I of Schedule VI of the Companies Act, 1956.
¾The Companies Act has laid down two forms of the Balance Sheet known as: Horizontal & Vertical.
¾The income statement is prepared according to Part II of Schedule VI of the Companies Act, 1956.
¾Difference Between Company’s Balance Sheet & Partnership Firm’s Balance Sheet:
Company’s Balance Sheet Partnership Firm’s Balance Sheet

Authorized Capital

Issued Capital Unissued Capital

Subscribed Capital Unsubscribed Capital

Called Up Capital Uncalled Capital (Reserve Capital)

Paid Up Capital Calls in Arrear

Basis of
Provisions Reserves
difference
Meaning Provision is created for some specific Reserve may be created for a specific
object for which it is created. purpose and it may not be created for a
specific purpose.
Charge Vs. A provision is a charge against profit i.e. it A reserve is an appropriation of profit
Appropriation will be created even though there is no i.e. it will not be created or the amount
profit. will not be transferred to any reserve if
there is no profits.
Time of creation A provision is created before ascertaining A reserve is created after ascertaining
the profit or los of a business. the profit.
Object The object of creating provision is to make A reserve is created to strengthen the
arrangement for any known liability. financial position of the business and to
increase in the working capital.
Utilisation Provision can be utilised only for the Reserve can be used in the payment of
purpose for which it is meant. any liability or loss.
Distribution Provision cannot be utilised for declaration Reserves can be used for declaration of
of dividends. dividends.
Disclosure in It is shown as deduction form the value of Reserves are always shown as a separate
Balance Sheet assets concerned on the assets side of the item under the head ‘Reserve and
Balance Sheet. However, it may be shown Surplus’ on the liabilities side of the
on the liabilities side also. Balance Sheet.
Investment Amount of provision cannot be invested Reserve can be invested outside the
outside business outside. It always remains in the business. business but in that cased it is called
fund.

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Rohit Agarwal 9883248954
XYZ Co. Pvt Ltd.
Dr. Profit & Loss Appropriation Account for the year ended 31st March 2008. Cr
Particulars Details Amt Particulars Details Amt
To Balance b/f (Dr.) Rs. Rs. By Balance b/f (Cr.) Rs. Rs.
To Net loss b/f By Net profit b/f
To Proposed Dividend By Balance c/f (Bal. Fig)
- On Equity Shares
- On Preference Shares
To Interim Dividend
- On Equity Shares
- On Preference Shares
To General Reserve
To Balance c/f (Bal. Fig)

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