Financial Statement of Company PDF

# COMPANY FINAL ACCOUNTS ## INTRODUCTION The industrial revolution has multiplied the production. Forms or types of business has changed. Company form came into existence after industrial revolution due to limitations of proprietorship and partnership firm. Various parties, just like shareholders,...

# COMPANY FINAL ACCOUNTS ## INTRODUCTION The industrial revolution has multiplied the production. Forms or types of business has changed. Company form came into existence after industrial revolution due to limitations of proprietorship and partnership firm. Various parties, just like shareholders, directors, creditors, investors, employees, etc. are connected with the company. Financial statements of a company are of utmost importance for all parties. They give a true and fair information about financial performance and position of a company. Therefore, they are to be prepared as per given form and format by Companies Act. In this chapter, we shall study about preparation of balance sheet and statement of profit and loss of company as per Companies Act, 2013. ## REMEMBER ### Specimen of Balance Sheet of Company : **Balance Sheet of ... Company as on ...** | Particulars | Note No. | Amount | Amount | |---|---|---|---| | **I. Equity and Liabilities:** | | | | | (1) Shareholders' funds : | | | | | (a) Share capital | 1 | | | | (b) Reserve and Surplus | 2 | | | | (2) Non-current liabilities: | | | | | (a) Long-term borrowings | 3 | | | | (b) Other long-term liabilities | 4 | | | | (c) Long-term provisions | 5 | | | | (3) Current liabilities: | | | | | (a) Short-term borrowings | 6 | | | | (b) Trade payables | 7 | | | | (c) Other current liabilities | 8 | | | | (d) Short-term provisions | 9 | | | | **Total** | | | | | **II. Assets:** | | | | | (1) Non-current assets : | | | | | (a) Fixed assets: | | | | | (i) Tangible assets | 10 | | | | (ii) Intangible assets | 11 | | | | (b) Non-current investments | 12 | | | | (c) Long-term loans and advances | 13 | | | | (d) Other non-current assets | 14 | | | | (2) Current assets: | | | | | (a) Current investments | 15 | | | | (b) Inventories | 16 | | | | (c) Trade receivables | 17 | | | | (d) Cash and cash equivalents | 18 | | | | (e) Short-term loans and advances | 19 | | | | (f) Other current assets | 20 | | | | **Total** | | | | ### Specimen of Statement of Profit and Loss of Company: **Statement of Profit and Loss of ... company for the year ended on...** | Particulars | Note No. | Amount | Amount | |---|---|---|---| | I. Revenue from operations (Sales-Sales return) | | | | | II. Other incomes (Interest, Dividend, Profit on sale of asset, etc.) | | | | | III. Total revenue (I+II) | | | | | IV. Expenses : | | | | | Purchases/Cost of goods sold | | | | | Changes in stock | | | | | Direct expenses (Wages, Freight) | | | | | Employee benefit expenses (Salary, Contribution to provident fund) | | | | | Finance cost (Interest on bond or debenture, Interest on loan) | | | | | Depreciation and Amortisation | | | | | Other expenses (Office and administrative expenses, Bad debts) | | | | | Total expenses : | | | | | V. Profit before tax (III-IV) | | | | | VI. Provision for tax | | | | | VII. Profit after tax (V-VI) | | | | ### Following classification must be remembered at the time of preparing Balance Sheet of Company: #### Equity and Liabilities 1. **Shareholders' fund** * (a) Share capital * (b) Reserve and Surplus 2. **Non-current liabilities** * (a) Long-term borrowings * (b) Other long-term liabilities * (c) Long-term provisions 3. **Current liabilities** * (a) Short-term borrowings * (b) Trade payables * (c) Other current liabilities * (d) Short-term provisions #### Assets 1. **Non-current assets** * (a) Fixed assets * (i) Tangible assets * (ii) Intangible assets * (b) Non-current investments * (c) Long-term loans and advances * (d) Other non-current assets 2. **Current assets** * (a) Current investments * (b) Inventories * (c) Trade receivables * (d) Cash and cash equivalents * (e) Short-term loans and advances * (f) Other current assets ## Classification of Heads and Sub-heads of Equity and Liabilities of Balance Sheet of Company : 1. **Share-holders' funds** * (a) Share capital * (b) Reserves and Surplus * Surplus of statement of profit and loss * General reserve * Securities premium reserve * Capital reserve * Reserve fund * Workers' accident compensation fund * Investment fluctuation reserve * Loss as per statement of profit and loss 2. **Long-term liabilities** * (a) Long-term borrowings * Debentures * Long-term loan * Bond * Public deposit * (b) Other long-term liabilities * Premium on redemption of debentures * Premium on redemption of preference shares * (c) Long-term provisions * Provident fund * Gratuity fund * Pension fund * Workers' savings accounts * Workers' profit sharing fund 3. **Short-term borrowings** * Short-term loans (for less than 12 months) * Bank overdraft * Cash credit 3. **Trade payables** * Creditors * Bills payables 3. **Other current liabilities** * Outstanding expenses * Income received in advance * Unclaimed dividend * Outstanding interest on debentures * Calls-in-advance * Advance received from customers 3. **Short-term provisions** * Provision for tax * Proposed dividend ## Classification of Heads and Sub-heads of Assets of Balance Sheet of Company: 1. **Fixed tangible assets** * Land-Buildings * Plant-Machinery * Furniture and fixtures * Vehicles * Tools and Equipments * Leasehold assets 1. **Fixed intangible assets** * Goodwill * Patents * Trademark * Copyright * Licence * Software * Franchise 1. **Non-current investments** * Provident fund investments * Debenture redemption fund investments * Fixed deposit * Government securities * Units of mutual fund * Shares and Debentures of other company 1. **Long-term loans and advances** * Loans to employees (For more than 12 months) * Custom deposit * Telephone deposit * Electricity deposit 1. **Other non-current assets** * Debenture discount * Advertisement campaign expenditure * Research and Development expenditure (To be written off after next 12 months) 2. **Current investments** * Shares and Debentures of other company * Government securities * Units of mutual fund * Marketable securities (For less than 12 months) 2. **Inventories** * Stock of raw material * Stock of semi-finished goods * Stock of finished goods * Stock in trade * Loose tools * Spare parts * Consumable stores * Goods in transit 2. **Trade receivables** * Debtors * Bills receivables 2. **Cash and cash equivalents** * Cash on hand * Bank balance * Cheques and drafts on hand 2. **Short-term loans and advances** * Loan advanced * Advances to suppliers (For less than 12 months) 2. **Other current assets** * Prepaid expenses * Income due but not received * Advertisement campaign expenditure * Debenture discount * Research and Development expenditure (To be written off during 12 months)