Final Accounts of Companies (Theory Notes)

Name of the Company…

Balance Sheet as at ….
Particulars Note Current Previous
Year (₹) Year (₹)
(I) Equity & Liabilities
(1) Shareholders’ Funds
(a) Share capital (1) xxx xxx
(b) Reserves & Surplus (2) xxx xxx
(c) Money received against Share Warrants xxx xxx

(2) Share Application money pending Allotment xxx xxx

(3) Non-Current Liabilities

(a) Long-term Borrowings (3) xxx xxx
(b) Deferred Tax Liabilities (Net) xxx xxx
(c) Other Long-term Liabilities (4) xxx xxx
(d) Long Term Provisions (5) xxx xxx

(4) Current Liabilities

(a) Short-term Borrowings (6) xxx xxx
(b) Trade Payables (7) xxx xxx
(c) Other Current Liabilities (8) xxx xxx
(d) Short-term Provisions (9) xxx xxx

Total xxx xxx

(II) Assets
(1) Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets
(i) Property, Plant and Equipment (10) xxx xxx
(ii) Intangible Assets (11) xxx xxx
(iii) Capital Work-in-Progress (12) xxx xxx
(iv) Intangible Assets under Development (13) xxx xxx
(b) Non-Current Investments (14) xxx xxx
(c) Deferred Tax Assets (Net) xxx xxx
(d) Long-term Loans & Advances (15) xxx xxx
(e) Other Non-current Assets (16) xxx xxx

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
(2) Current Assets
(a) Current Investments (17) xxx xxx
(b) Inventories (18) xxx xxx
(c) Trade Receivables (19) xxx xxx
(d) Cash & Bank Balances (20) xxx xxx
(e) Short-term Loans & Advances (21) xxx xxx
(f) Other Current Assets (22) xxx xxx

Total xxx xxx

Notes to Accounts:
Particulars ₹
(1) Share Capital
Authorised Capital:
………. Equity Shares of ₹ ….. each xxx
………. % Preference Shares of ₹ ….. each xxx
xxx
Issued Capital:
………. Equity Shares of ₹ ….. each xxx
………. % Preference Shares of ₹ ….. each xxx
(Compulsorily mention those shares issued for consideration other than cash) xxx

Subscribed Capital:
Subscribed and Fully paid up
………. Equity Shares of ₹ ….. each xxx
………. % Preference Shares of ₹ ….. each xxx
(Compulsorily mention those shares issued for consideration other than cash)

Subscribed but not fully paid up:

………. Shares of ₹ ….. each xxx
Less: Calls in Arrears (xxx) xxx
(include unpaid calls by directors/officers of the company) xxx
Add: Share Forfeiture A/c xxx
xxx
(2) Reserves & Surplus
Capital Reserve xxx
Capital Redemption Reserve xxx
Securities Premium Reserve xxx
Debenture Redemption Reserve xxx
Revaluation Reserve xxx
Share Options Outstanding Account xxx
Dividend Equalisation Reserve xxx

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
 Reserve for replacement of asset xxx
Investment Fluctuation Reserve xxx
Workmen Compensation Reserve xxx
General Reserve xxx
Tax Reserve xxx
Subsidy Reserve xxx
Surplus i.e., Balance in Statement of Profit & Loss xxx
xxx
(3) Long-term Borrowings
…% Debentures/Bonds (subtract Debenture Suspense if any) xxx
Public Deposits/Fixed Deposits Accepted xxx
Premium on Redemption of Debentures xxx
Term Loans from Bank/Other parties xxx
Mortgage Loan xxx
Other Long term loans xxx
xxx
(4) Other Long-term Liabilities
Long-term Trade Payables xxx

(5) Long-term Provisions

Provision for Gratuity xxx
Provision for Provident Fund xxx
Provision for Earned leave xxx
Encashable leave payable at the time of retirement xxx
xxx
(6) Short-term Borrowings
Bank overdraft xxx
Cash credit xxx
Loans repayable on demand xxx
Current Maturities of Long-term Borrowings/Debt xxx
Short-term Loans xxx
xxx
(7) Trade Payables
Creditors xxx
Bills Payable/Acceptances xxx
xxx
(8) Other Current Liabilities
Interest Accrued and due on Borrowings xxx
Interest Accrued and not due on Borrowings xxx
Income received in advance xxx
Unpaid dividend/Unclaimed Dividend xxx
Excess application money due for refund (including interest) xxx
Unpaid matured deposits/debentures with accrued interest xxx

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
 Calls-in-advance (and interest payable thereon) xxx
Outstanding expenses xxx
Provident Fund Payable xxx
Output GST xxx
Advances received from customers xxx
Dividend payable xxx
xxx
(9) Short-term Provisions
Provisions for Employee benefits (to be settled within 12 months) xxx
Provision for Expenses xxx
Provision for Tax xxx
Other Provisions xxx
xxx
(10) Property, Plant and Equipment (Tangible Assets)
Land & Building xxx
Plant & Machinery xxx
Furniture & Fixtures xxx
Computers xxx
Office Equipments xxx
Vehicles xxx
Livestock xxx
xxx
(11) Property, Plant and Equipment (Intangible Assets)
Goodwill xxx
Brand/Trademark xxx
Computer Software xxx
Mastheads & Publishing Titles xxx
Mining rights xxx
Copyrights xxx
Patents & Other Intellectual Property (IP) rights xxx
Services & Operating rights xxx
Recipe, Formulae, Models, Designs xxx
Licenses & Franchise xxx
xxx
(12) Property, Plant and Equipment (Capital Work-in-Progress)
Fixed tangible asset under construction by the company xxx
Building under construction xxx
Work in progress (Machinery) xxx
xxx
(13) Property, Plant and Equipment (Intangible Assets under Development)
Intangible assets like patents, IP, rights etc under development by company xxx

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
(14) Non-Current Investments
Investments in Property xxx
Investments in Equity Shares/Preference Shares/Debentures/Bonds xxx
Investments in Government/Trust Securities xxx
Investments in Mutual Funds xxx
Investments in Partnership Firms xxx
Long-Term Investments xxx
xxx
(15) Long-term Loans & Advances
Capital Advances xxx
Security Deposits xxx
Long-term loans to Employees xxx
Long-term loans to Suppliers xxx
Advance to Subsidiaries xxx
Loans/Debts due from Directors/Officers of the company xxx
xxx
(16) Other Non-Current Assets
Long-term Trade Receivables xxx
Unamortised expenses/losses xxx
Security Deposits (with Electricity Supply Company or other companies) xxx
Insurance claim receivable xxx
xxx
(17) Current Investments
Investments in Equity Shares/Preference Shares/Debentures/Bonds xxx
Investments in Government/Trust Securities xxx
Investments in Mutual Funds xxx
Marketable Securities xxx
xxx
(18) Inventories
Raw Material xxx
Work-in-Progress xxx
Finished Goods xxx
Stock in Trade xxx
Stores & Spare-parts xxx
Loose Tools xxx
Goods in transit xxx
xxx
(19) Trade Receivables
Debtors xxx
Less: Provision for Doubtful Debts (if any) (xxx) xxx
Bills receivable (Bills of Exchange) xxx
xxx

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
(20) Cash & Bank Balances
Bank Balance xxx
Cheques & Drafts on hand xxx
Cash in hand xxx
Bank Deposits (maturity period more than 3m but not exceeding 12m) xxx
Earmarked Balances with banks (for eg. Unpaid dividend) xxx
Balance with Banks held as margin money xxx
Bank Deposits (more than 12m maturity) xxx
xxx
(21) Short-term Loans & Advances
Advances recoverable in cash withing the Operating Cycle xxx
Loans/Debts due from Directors/Officers of the company xxx
xxx
(22) Other Current Assets
Prepaid expenses xxx
Accrued Income xxx
Advance Tax xxx
Interest accrued on Investments xxx
Advance to Suppliers xxx
xxx
Contingent Liabilities & Commitments
(a) Contingent Liabilities:
Proposed Dividend xxx
Bills Receivable discounted, not yet due for payment xxx
Claims against the company not acknowledged as debt xxx
Guarantees given by the company xxx
Arrears of Fixed Cumulative Preference Dividend xxx
xxx
(b) Commitments:
Uncalled liability on shares and other investments partly paid xxx
Estimated number of contracts remaining to be executed xxx
xxx

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
Main Head & Sub Head Practice:
Item Main Head Sub-head
Debentures
Deposits
Securities Premium
Capital Reserve
Forfeited Shares Account
Interest accrued & due on
Debentures
Bills Payable
Advances received from
customers
Sundry Creditors
Premium on redemption of
Debentures
Unclaimed dividend
Calls-in-Arrears
Calls-in-Advance
Interest accrued but not due on
Debentures
Current Maturities of Long-Term
Debt
Arrears of Fixed Cumulative
Preference Dividend
Bank Overdraft
Interest accrued and due on
Unsecured Loans
Debenture Redemption Reserve
Capital Redemption Reserve
Advances from Customers
Trade Payables
Provision for Tax
Dividend payable (unpaid)
Surplus i.e., balance is statement
of Profit & Loss (Dr.)
Surplus i.e., balance is statement
of Profit & Loss
Office Equipment
Loose Tools
Goodwill
Trademarks
Bills Receivables

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364
Trade Debtors
Land
Building
Stock-in-trade
Stores and Spare parts
Furniture
Vehicles
Advance to Subsidiaries
Cash at Bank
Cash in Hand
Work-in-progress (Machinery)
Plant
Interest accrued on Investments
Deposit with Electricity Supply
Company
Trade Creditors
Marketable Securities
Finished Goods
Patents
Mortgage Loan
Investments
General Reserve
10% Debentures
Licences and Franchise
Capital advances
Brands
Public Deposits
Building under construction
Long-term Investments
Shares of Reliance Ltd.
Prepaid Insurance
Deposit for Electricity
Investment in Land & Building
Mining Rights
Computer Software

R.D. ACCOUNTS Rupa Shah: 9820232752

I.S.C. Devarsh Shah: 9619187364