ACCOUNTINGDOSE

THE COMPANIES ACT 2013: SCHEDULE III The presentation of financial statements of companies registered under the companies Acts is now governed by schedule III of companies Act 2013.The format is same as per schedule VI of the companies Act 1956. Identifiable difference from previous format only one format has been prescribed in earlier there were two alternatives formats. PROFIT AND LOSS ACCOUNT was renamed as STATEMENT OF PROFIT AND LOSS. The 'liabilities' side stand was renamed as "Equity and Liabilities" In the statement of profit and loss, the threshold level for disclosure of expenditure items has increased from Rs. 5,000 to Rs. 1,00,000. remaining changes are very minute.  FOLLOWING IS THE FORMAT OF BALANCE SHEET AS PER SCHEDULE III

Hi friends, here we are going to learn how to do balance sheet and statement of profit and loss in less than ten minutes. Let us begin the topic with trail balance. Trail Balance is a statement of debit and credit balances of various ledger accounts at the end of the financial year or any given date.As it is prepared by taking all ledger account balances , both debit and credit sides of the trail balance are always equal.T rail balance is used to prepare final accounts of entity.