Page 145 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes 13. A partly paid preference share cannot be redeemed.
14. Balance of share forfeited account after reissue of the forfeited shares i.e. transferred to
capital reserve.
15. Transfer to capital redemption reserve account is permitted from profit and loss account
and dividend equalisation account.

!

Caution At the time of issue of shares, an applicant is required to pay minimum 5% of the
nominal value of the share as application money.

7.4.1 Balance sheet

The prescribed form of the Balance Sheet is given in Part I of Schedule VI of The Companies Act,
1956.

The Companies Act has laid down two forms of the Balance Sheet known as:
(i) Horizontal form
(ii) Vertical form
format of summarised Balance sheet (Horizontal form)

schedule vi part i
Balance sheet of ….co. ltd.
as at …

figures liabilities figures figures assets figures
for the for the for the for the
previous current previous current
year year year year
` ` ` `
1. Share Capital 1. Fixed Assets
2. Reserves and surplus 2. Investments
3. Secured Loans 3. Current Assets, Loans and
Advances
4. Unsecured Loans
(a) Current Assets
5. Current Liabilities and
Provisions (b) Loans and Advances
(a) Current Liabilities 4. Miscellaneous Expenditure
(b) Provisions 5. Profit and Loss A/c

Notes A footnote to the Balance Sheet may be added to show the contingent
liabilities.

The format of the detailed Balance Sheet of a company in a horizontal form is given below:

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