Abdul Hafeez (Accountant) (39 Points)
23 December 2011Dear experts Please take alook on my problem that I am preparing balance sheet for every month not for the whole year then the question is I should take the assets in balance sheet or not.if I should take the assets so what value I should take whole value of the assets or whole value/12months(whole value divided by twelve months)and aslo tell me the entries for the same.
praveen
(Chartered Accountant)
(6971 Points)
Replied 23 December 2011
You will have to take the closing balance on the date on which you are preparing the balance sheet.
Say if you are preparing the balance sheet on 31.12.2011 then you have to take all the assets and liabilities that are present on that date.
You cannot divide the balance sheet figures to get the balance on the monthly basis.
CA Kiran Sutrave
(CA)
(428 Points)
Replied 23 December 2011
Balance Sheet is always prepared as on date. So you need to account for all the Assets and Liabilities as on date of Balance Sheet. It should be done as if you are closing the books of accounts as on March 31.
You can take a call whether you have to -
1. Provide for Depreciation on a monthly basis or not.
2. Calculate Foreign Exchange on outstanding receivables / payables on a monthly basis.
3. Make Provisions in the books of accounts etc.
Praveen Kumar
(Manager - Finance & Accounts)
(189 Points)
Replied 23 December 2011
LALIT KUMAR GANERIWAL
(accountant)
(241 Points)
Replied 23 December 2011
AGREE WITH CA KIRANJI
BALANCE SHEET APPEAR OUR FINANCIAL POSITON ITS BOTH SIDE MAY BE EQUAL HOWEVER ITS WITHOUT TAKING ASSETS IN VALUE AS ON BALANCE SHEET DATE AFTER PROVISION OF DEPRECIATION
azhagan
(Audit Asst.)
(143 Points)
Replied 23 December 2011
Ya... You should take the hole value of assets
RONAK DARJI
(CA FINAL)
(382 Points)
Replied 23 December 2011
CA Chandani
(CA)
(217 Points)
Replied 23 December 2011
Agree with Pravin Ji....
B/S is just as a status report as on dat specific day.
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