Finalisation of balance sheet is to prepare the summary of
accounts after all adjustments & provisions like
depreciation of fixed assets, provision for doubtfull
debts, provision for deffered tax liabilities/assers,
provision for various taxes etc. It is prepared as per
standard Format:
M/s .................
Balance Sheet
(For the Year ending as on.....200...)
____________________________________________________________
Liabilities |Amt. | Assets | Amt.
_____________________|_____|_________________________|______
Capital | | Fixed Assets |
Loans and advances | | Current Assets |
Reserves & Provision | | Preliminary exp. |
Cureent Liabilities | | |
_____________________|_____|_________________________|______
_______________Total_|_____|___________________Total_|______
_
Finalization of balance sheet is to organize the summary of
Accounts as conclusion balance and all adjustments &
provisions like
depreciation of fixed assets, provision for doubtfull
debts, provision for deffered tax liabilities/assers,
provision for various taxes and other exp etc. It is
prepared as per
standard Format for showing details of condition of
organization
1) Ensure all the incomes and expenses are booked 2) Ensure
provisions are made for income receivable and expenses
payable for the period of the financial year 3) Provide
depreciation on fixed assets 4) Closing stock valuation 5)
In case of partnership firm there is a limit for interest to
partners, remuneration to partners. 6) Check the GP ratio
whether matching with the previous year, if there much
variation, it should be justified. Netprofit ratio may
change depending upon the administrative expenses. But there
should be a proper justification if there variation in GP ratio.
Income Statement is prepared on the basis of Accrual.
Therefore we will record all expenses to be incurred
together with already incured but imcome is recorded only
when it is realised either in cash or otherwise.Fixed
Assets are the most important part of any Balance sheet
therefore we should carefully depreciate/amortize the fixed
assets accordingly.Profit should be added to the capital
and loss should be deducted. But preparation of all Ledgers
are the primary task.The carrying amount of all the ledgers
help to prepare the balance sheet.
Finalization of balance sheet is to close the balance sheet after preparing the profit and loss account considering the adjustment of depreciation, Outstanding Exp, Accrued Income etc. The profit or loss should be transfer to capital Account.
Finalisation of balance sheet is to prepare the summary of
accounts after all adjustments & provisions i.e.
depreciation of fixed asstes, provision for doubtfull debts,
provision for deffered tax and other expances.
first of all prepare all ledger accounts and trial balance
after prepare trading a/c and profit&loss a/c after we have
finalize of balance sheet.
two side of balance sheet one is liabilities and second is
assets. liabilities side include capital, loans & advances,
provision & reserves, current liabilities and assets side
include fixed assets, current assets, preliminary expances.
when do we claim service tax credit?for eg: in a company
they are not claiming any service tax credit for their
telephone expenses incured?
what would be the reasons for not claiming it?
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