The Financial Statements of a Company includes three numbers of statement these are discussed in this topic:
What are the Financial Statements of a Company:
According to the accounting policies, practices, and accounting standards, we have to prepare financial statements of a company at the end of each financial year. Section 129 of the Company Act, 2013, prescribed the format of the balance sheet and profit and loss account(Income statement) in the scheduled III of the Company Act 2013.
Section 2(4) of Company Act, 2013 includes the following financial statements:
- Balance Sheet
- Profit and loss account
- Notes to Accounts
- Cash Flow Statment
Definitions of Financial Statements of a Company:
“The Financial Statement Provide a summary of accounts of a business enterprise, the Balance Sheet reflecting the Assets, Liabilities, and capital as on a certain date and income statement showing the results and operation during a certain period.”
– John N. Myer
“Financial Statement is the end product of financial accounting prepared by the accounts of a business enterprise that purport to reveal the financial position of the enterprise, the result of its recent activities, and an analysis of what has been done with earnings.”
– Smith and Ashburne
Meaning of Company’s Balance Sheet: –
The Company’s Balance Sheet is the statement showing the position of the assets and liabilities of the business for a particular period. It is a list of balances of ledger account of assets, capital, and liabilities. The value of assets showing what we can realize from the market and The value of Liabilities shows what we have to pay in the future. Capital shows the amount invested by the owner into the business entity. it is the basis of the following account equation.
“Assets = Capital + Liabilities“
What is Accounting Equation | Example
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The Format of the Company’s Balance Sheet: –
The Format of the Company’s Balance Sheet as prescribed in Schedule III, Part I of companies Act, 2013: –
Name of the Company
Balance Sheet as at
|
Particular (1) |
Note No. (2) |
Figures as at the end of the Current Reporting Period |
Figures as at the end of the Previous Reporting Period (4) |
| I. Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | |||
| (b) Reserves and Surplus | |||
| (c) Money Received against Share Warrants | |||
| 2. Share Application Money Pending Allotment | |||
| 3. Non-Current Liabilities | |||
| (a) Long-term borrowings | |||
| (b) Deferred Tax Liabilities (net) | |||
| (c) Other long-term liabilities | |||
| (d) long-term Provision | |||
| 4. Current Liabilities | |||
| (a) Short-term Borrowings | |||
| (b) Trade Payables | |||
| (c) Other current Liabilities | |||
| (d) Short-term Provision | |||
| 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 Investment | |||
| (c) Deferred Tax Assets (net) | |||
| (d) Long-term loans and advances | |||
| (e) Other Non-Current Assets | |||
| 2. Current Assets | |||
| (a)Current Investment | |||
| (b)Inventories | |||
| (c) Trade receivable | |||
| (d) Cash and Cash equivalents | |||
| (e) Short-term loans and advances | |||
| (f) Other current Assets | |||
| Total |
Download Format of Company’s Balance Sheet Format:
1. Download Format in Excel Worksheet of Company’s Balance Sheet as per Schedule III, Part I of Companies Act, 2013
2. Download Format in PDF of Company’s Balance Sheet as per Schedule III, Part I of Companies Act, 2013
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