Page 107 - DCOM409_CONTEMPORARY_ACCOUNTING

Contemporary Accounting

Notes (e) Plant & Machinery
(f) Furniture & Fixture
(g) Patents, Trade Marks and Designs
(h) Development of property

(i) Copyrights
(j) Live stock
(k) Vehicles
2. Investments: Investments are shown after fixed assets. It is necessary to disclose nature
and mode of its valuation of every investment. Market price or cost price, at which
investments are valued, must be disclosed. All investments must be shown separately
such as Govt., shares, debentures, etc.
3. Current Assets loans and advances:
(a) Current assets are such assets which are likely to be converted into cash within one
year from one balance sheet. Such assets are. (1) Loose tools (2) Stock in trade
(3) Work in progress (4) Sundry debtors (5) Cash and Bank balance

(b) Loans and advances – it includes loans and advances against purchase of goods and
various expenses.
4. Miscellaneous Expenditure: Expenses not written off– (1) Preliminary Expenses (2) Discount
on issue of shares and debentures (3) Expenses including commission or brokerage on
underwriting (4) Interest paid out of capital (5) Other sums.

5. Profit and Loss Account: If there is any debit balance in profit and loss account, it will be
shown on the assets side of the balance sheet.
The given below is the proforma of Balance Sheet as per schedule VI and part I.
Form of Balance Sheet
(Horizontal Form)
Balance sheet of …………… as at …………
(Form of Balance Sheet as Per Schedule VI and Part I)

Figures Liabilities Figures Figures for Assets Figures
for the for the the for the
previous Current previous current
year (`) year (`) year (`) year (`)
1. Share Capital 1. Fixed Assets
Authorized (1) Goodwill
…………shares of (2) Land
`…………each
(3) Buildings
Issued……………….sh
(4) Leaseholds
are of `…………each
(5) Railway Sidings
Subscribed and paid
(6) Plant &
up……… shares of
`……………each Machinery
(7) Furniture and
Less: Called unpaid
Fittings
Add: Forfeited shares
(8) Development of
Property
Contd...

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