Page 321 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

3. Arrears of fixed cumulative (iv) all unutilized monies out of
dividend. (The period for which the issue must be separately
Notes the dividend are in arrear or if disclosed in the Balance Sheet of
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, (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).

Notes
1. Paise can also be given in addition to Rupees, if desired.
2. Dividend declared by subsidiary companies after the date of the balance sheet should
not be included, unless they are in respect of a period which closed on or before the
date of the balance sheet.
3. Any reference to benefit expected from contracts to the extent not executed shall be
not made in the balance sheet but shall be made in the Board’s report.
4. Particulars of any redeemed debentures which the company has power to issue
should be given.
Contd...

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