How to present in balance sheet as per scheduled III of company Act

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This query is : Resolved

Daya (Querist)

14 June 2025 How to present in balance sheet as per scheduled III of company act
Excess paid to Trade payable and excess received from Trade receivable,

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

12 August 2025 Here’s a clear guide on how to present excess paid to trade payables and excess received from trade receivables in the Balance Sheet as per Schedule III of the Companies Act, 2013:
1. Excess Paid to Trade Payables
Meaning: Payment made to a supplier over and above the invoiced amount.
Balance Sheet Presentation:
Classified as an asset because it represents an amount recoverable from the supplier.
Schedule III Head:
“Other Current Assets” under Current Assets.
You can show it as a separate line item like “Excess Payment to Trade Payables” for clarity.
2. Excess Received from Trade Receivables
Meaning: Amount received from a customer over and above the invoiced amount.
Balance Sheet Presentation:
Classified as a liability because the company owes this excess amount back to the customer.
Schedule III Head:
“Other Current Liabilities” under Current Liabilities.
You can show it as “Excess Receipt from Trade Receivables” or similar.

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