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Secured Loans:
(1) Debentures
and Advance:
(2) Loans and Advance from
(A) Current Assets (1) Interest
accrued in Investment (2) Store
Banks
and spare paid (3) Loose Tools
(3) Loans and Advance from
(4) Stock-in-Trade (5) Work-in-
Subsidiaries.
Progress [In respect of (2) and
(4) Other Loans and Advance
(4), mode of valuation of stock
(Loans from directors and/or
shall be stated and the amount
shown
should
manager
be
in respect of raw materials shall
separately). Interest accrued and
also be stated separately where
due on Secured Loans should be Current Assets’ Loans
practicable. Mode of valuation
included under the appropriate
sub-heads under the head of work-in-progress shall be
stated].
“Secured Loans”.
(6) Sundry Debtors–(a) Debts
The nature of security to be outstanding for a period
specified in each case. Unit 13: Final Accounts for Companies
exceeding six months. (b) Other
Where loans have been debts Less: Provision (The
guaranteed by manager and/or amounts to be shown under
directors, a mountain thereof, Sundry Debtors shall include
shall also be made and also the the amount due in respect of
aggregate amount of such loans goods sold or service rendered Notes
under each head. In case of or in respect of other contractual
Debentures, terms of redemption obligations but shall not include
or conversion (if any) are to be the amounts which are in the
stated together with earliest date nature of loans or advances).
of redemption or conversion.
In regard to Sundry Debtors
Unsecured Loans: particulars to be given
1. Fixed Deposits separately of-
(2) Loans and Advance from (a) Debts considered good and
Subsidiaries. in respect of which the company
(3) Short-term Loans and is fully secured.
Advance. (b) Debts considered good for
(a) From Banks (b) From Others which the company holds no
security other than the debtor’s
(Short-term loans include those
personal security; and
which are due for repayment not
late than one year as at the date of (c) Debts considered doubtful or
the balance sheet). bad. Debts due by directors or
(4) Other Loans and Advance other officers of the company
any of either severally or jointly
(a) From Banks (b) From Others
with any other person, or debts
(Loans from directors and/or due by firms or private
manager should be shown
companies respectively in which
separately).
any director is a partner or a
Interest accrued and due on director or a member to be
Unsecured Loans should be separately stated.
included under the appropriate Debts due from other companies
sub-head “Unsecured Loans”
under the same management
where Loans have been
within the meaning of sub-
guaranteed by manager and/or section (IB) of Section 370 to be
directors, a mention thereof shall
disclosed with the names of the
be made together with the
companies. The maximum
aggregate amount of such loans amount due by directors or
under each head.
other officers of the company at
Current Liabilities and any time during the year to be
Provisions: shown by way of a note. The
(A) Current Liabilities provision to be shown under
1. Acceptance this head should not exceed the
amount of debts stated to be
2. Sundry Creditors
considered doubtful or bad and
3. Subsidiary Companies
any surplus of such provision, if
4. Advance Payments and already created, should be
unexpired discounts for the shown at every closing under
portions for which value has still “Reserve and Surplus” (in the
to be given e.g. in the case of the Liabilities side) under a separate
following classes of companies: sub- head “Reserve for Doubtful
Newspaper’s Fire Insurance, or Bad Debts.” (7A) Cash
Theatres, Clubs, Banking, balance on hand. (7B) Bank
Steamship Companies etc. balance-(a) with Scheduled
5. Unclaimed Dividends Banks and (b) with other. In
6. Other Liabilities (if any) regard to bank balance,
7. Interest accrued but not due on particulars to be given
loans. separately of- (i) the balance
lying with scheduled Banks on
(B) Provision
current account, call accounts
1. Provision for Taxation
and deposit account. (ii) the
2. Proposed Dividend names of the bankers other than
3. For Contingencies scheduled Banks and the
4. For Provident Fund Scheme. balance lying with each such
banker on current accounts, call
5. For Insurance, Pension and
account and deposit accounts
similar staff benefit schemes.
and the maximum amount
6. Other Provision: A foot-note to
outstanding at any time during
the balance sheet may be added to the year with each such bankers;
show separately:-
and (iii) the nature of the
1. Claims against the company interest, if any, of any director
not acknowledged as debts.
or his relative in each of the
2. Uncalled liability on shares bankers [other than Scheduled
partly paid. Bankers referred in (ii) above.]
3. Arrears of fixed cumulative (iv) all unutilized monies out of
dividend. (The period for which the issue must be separately
the dividend are in arrear or if disclosed in the Balance Sheet of Contd...
there is more than one class of the company indicating the
shares, the dividend on each such manner in which such
class that are in arrear, shall be unutilized funds have been
stated. The amount shall be stated invested.
before deduction of income tax, LOVELY PROFESSIONAL UNIVERSITY 313
(B) Loans and Advance
except that in the case of tax and
(8) (a) Advances and loans to
free dividends the amount shall subsidiaries. (b) Advances and
be shown free of income tax; the
loans to partnership firms in
fact that is it is so shown shall be which the company or any
stated).
subsidiaries is a partner (9) Bills
4. Estimated amount of contract of Exchange (10) Advance
remaining to be executed on recoverable in cash or in kind or
capital account and not provided for value to be received. e.g.
for. Rates, Taxes, Insurance etc. (11)
5. Other moneys for which the Balance with customs, Port
company is contingently liable. Trust etc. (where payable on
(The amount of any guarantee demand). The instructions
given by the company on behalf regarding Sundry Debtors apply
of directors or other officers for to “Loans and Advance” too.
the company shall be stated and The amounts due form other
where practicable the general companies under the same
nature and amount of each such management; within the
contingent liabilities, if material, meaning of sub-section (IB) of
shall also be specified). Section 370 should also be given
with the name of
companies the maximum
amounts due from every one of
these at any time during the
year must be shown.
Miscellaneous Expenditure
(To the extent not written off or
adjusted).
1. Preliminary expenses.
2. Expenses including
commission or brokerage on
underwriting or subscription of
shares or debentures.
3. Discount allowed on the issue
of shares or debentures.
4. Interest paid out of capital
during construction (also stating
the rate of interest).
5. Development expenditure not
adjusted.
6. Other sums (specifying
nature)
Profit and Loss Account (Show
here the debit balance of profit
and loss account carried
forward after deduction of the
uncommitted reserve, if any).
