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Final Accounts of CompaniesFinal Account of Company or Financial StatementMeaning of Final AccountsRequirement of Companies Act 2013,section 129Schedule lll companies Act 2013Format of Balance SheetExplanations of Balance sheet itemsI. Equity and Liabilities: (1) Shareholder's funds (a) Share Capital (b) Reserves and surplus (c) Share warrants (2) Share application amount pending allotment (3) Non-Current liabilities (a) Long-term borrowings (b) Deferred tax liabilities (c) Other long-term liabilities (d) Long-term provisions (4) Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisionsII. Assets: (1) Non-Current assets (a) Fixed assets (b) Non Current investments (c) Deferred tax assets (d) Long-term loans and advances (e) Other non-current assets (2) Current assets (a) Current investments (b) Inventories (c) Trade receivals (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assetsOperating Cycle PeriodStatement showing operating cycle periodContingent LiabilitiesContingent liabilities shall be classified as:- 1. Claims against the company not acknowledge as debt (case pending in court) 2. Guarantees given by the company 3. Liability on partly paid up shares 4. Bill discounted 5. Debenture as a collateral security 6. Other money for which the company is contingent liableStatement of Profit & LossExplanations of statement of P/L items(1) Revenue from operations (2) Other income(3) Total revenue (4) Expenses: i. Material consumed ii. Purchase of finished goods iii. Changes in inventory of W.I.P and finished goods iv. Employee benefit expenses v. Finance cost vi. Depreciation & amortization expenses vii. Other expenses(5) P.B.T (3-4) (6) Less: Tax (Adjustment) (7) Profit after tax/Current year profit (8) Add: Previous year profit Total profit (9) Less: Appropriation of Profit:- a. Transfer to G.R/Other reserve/fund b. Proposed dividend/Interim dividend c. Other appropriation of profit Surplus or net lossSome important Practical Problem for Practice.

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