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Balance Sheet Query

JMD (STUDENT) (563 Points)

14 June 2011

In new format of B/s i.e. Vertical form, profit should be added in share capital fund or in reserve in case a prop. firm?

Further in Long term borrowings incl both Sec. & Unsec. Loan?? and should Bank OD a/c bal. in to be incl. in long term borrowing or in short term borrowing? all is in case of a prop. firm

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4 Replies

siva sankar reddy (chartered accountant) (104 Points)
Replied 14 June 2011

For Proprietor ship firm,New Schdeule-VI not applicable, if you want to prepare as per the schedule,add profit to capital and disclose in a way of adding to capital.

Bank O.D should always be short term,since it is reviewed every year. As per as both secured and unsecured comes underlongterm loans only when they are payable for a period of 3 to 7 years.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 14 June 2011

Originally posted by : siva sankar reddy
	For Proprietor ship firm,New Schdeule-VI not applicable, if you want to prepare as per the schedule,add profit to capital and disclose in a way of adding to capital. Bank O.D should always be short term,since it is reviewed every year. As per as both secured and unsecured comes underlongterm loans only when they are payable for a period of 3 to 7 years.