deals with the vertical format of final accounts in India

1. Corporate Financial Statements
B.V.Raghunandan,
SVS College,
Bantwal

2. Preparation of Financial Statements
• As per the provisions of Companies Act
• Compliance with Accounting Standards
prescribed by National Advisory Council on
Accounting Standards
• A profit and loss account and
• A Balance Sheet arranged by the Schedules
provided in the Companies Act
• Vertical Format as contained in Schedule VI to
Companies Act

3. Specimen of Vertical Format of Balance Sheet
Amount Amount
Schedule
Sources of Funds (Current (Previous
No
Year) Yr)
I Shareholders’ Funds:
(a)Share Capital 1
(b)Reserves & Surplus 2
II Loan Funds: 3
(a)Secured Loans
(b)Unsecured Loans ------------ --------------- ------------
Total ------------ --------------- ------------

4. Specimen of Vertical Format of Balance Sheet
Amount Amount
Application of Funds Schedule No
(Current Year) (Previous Yr)
I Fixed Assets 4
II Investments
III Current Assets:
(a) Inventories 5
(b) Sundry Debtors 6
(c) Cash & Bank 7
(d) Other Current Assets
(e) Loans & Advances 8
(-) Curr. Liab& Provisions:
(a) Current Liabilities 9
(b) Provisions 10
IV.Misc. Expenditure 11
---------- --------------- ------------
Total
------------ --------------- ------------

5. Schedule 1: Share Capital Amount
Authorised:
…………… Shares of Rs…………….each -------------------------------
Issued:
………….. Shares of Rs……………..each
Subscribed:
………….. Shares of Rs…………….each
Called Up and Paid-Up:
………….. Shares of Rs…………….. Each ------------------------------
(-) Calls-in-Arrears -------------------------------
Paid-Up
-------------------------------

6. Schedule 2: Reserves and Surplus Amount
 General Reserve
-
 Profit & Loss Account
 Dividend Equalisation Fund
 Investment Fluctuation Fund
 Debenture Redemption Fund
 Workmen Compensation Fund
-------------------------------
-------------------------------

7. Schedule 3:Secured Loans Amount
1. Debentures -
2. Loans & Advances from Banks
3. Loans & Advances from Subsidiaries
4. Other Loans & Advances
-------------------------------
Total -------------------------------

8. Schedule 4: Fixed Assets Amount
i. Goodwill
ii. Land
iii. Buildings
iv. Leaseholds
v. Railway Sidings
vi. Plant & Machinery
vii. Furniture & Fittings
viii. Development of Property
ix. Patents, Trade Marks and Designs
x. Livestock
xi. Vehicles
-------------------------------
Total

9. Schedule 6: Sundry Debtors Amount
Sundry Debtors:
A) Debts Outstanding for More than Six
Months
B) Others
(-) Reserve for Doubtful Debts
(-) Reserve for Discount on Debtors
------------------------------
Total
-------------------------------

10. Schedule 7: Cash & Bank Amount
Cash in Hand
Balances with Bank
------------------------------
-------------------------------

11. Schedule 8: Loans & Advances Amount
Prepaid Expense
Loans to Subsidiaries
Tax Deducted at Source
Advance Payment of Tax
Advances to Staff
-------------------------------
-------------------------------

12. Schedule 9: Current Liabilities Amount
1) Acceptances/Bills Payable -
2) Sundry Creditors
3) Unclaimed Dividends
4) Other Liabilities
------------------------------
-------------------------------
-

13. Schedule 10: Provisions Amount
1) Provision for Taxation
2) Proposed Dividends
3) Contingencies
4) Provident Fund Scheme
5) Staff Benefit Schemes
6) Other Provisions
------------------------------
-------------------------------

14. Schedule 11: Miscellaneous Expenditure Amount
1) Preliminary Expenses
2) Share or Debenture Issue Expenses
3) Discount on Issue of Shares
4) Interest Paid out of Capital
5) Development Expenditure
6) Profit & Loss Account
7) Other Items
------------------------------
-------------------------------

15. Vertical Form of Profit & Loss Account
Particulars Schedule Current Yr Previous Yr
No Figures Figures
Income
Sales 12
Other Income 13
Increase/Decrease in Inventory 14
Total Income ------------------- -------------------- ---------------------
Expenditure: ------------------- -------------------- ---------------------
Cost of Material
15
Staff Salary
16
Other Expenses
17
Interest
18
Depreciation
19
--------------
Total Expenditure
--------------

16. Schedule Fig. of Fig. Prev
Particulars
No Cur. Yr Yr
1) Profit Before Taxation &
Extraordinary Items
(Income-Expenditure)
2) Extraordinary Items -20-
3) Profit for the Current Year
4) Prior Period Adjustments -21-
5) Profit Before Taxation
6) Profit of the Previous Year
Total Profit Available for
Appropriations

17. Schedule Fig. of Fig. Prev
Particulars No Cur. Yr Yr
Appropriations:
Proposed Dividend
Transfer to Statutory Reserve
Transfer to General Reserve
Transfer to Debenture
Redemption Reserve
Total Profit carried down

18. Thank You