Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

provisional financial statements

shivaraj (student) (32 Points)

25 February 2017

what exactly the provisional and projected statemensts are? and how they are prepared?

Reply
Follow
Share

4 Replies

(Guest)

Provisional Balance Sheet: - Provisional Balance Sheet is prepared on the basis of Past data i.e. for the period which is already completed. Estimated Balance Sheet: - Estimated Balance Sheet is prepared for future Data (for which period is started but not completed) on basis of projection i.e. for the period which already started but not completed. Projected Balance Sheet: - Projected Balance Sheet is prepared for future Data on the basis of projection i.e. for which period is not started. For Example: - If one person prepares balance sheet for periods- 01/04/2014 to 30/11/2014, 01/04/2014 to 31/03/2015, 01/04/2015 to 31/03/2016 on date 15 Dec 2014 then balance are as follows: - Preparation of Balance Sheet for the Period 1st April 2014 to 30th November 2014 is Provisional Balance Sheet. Preparation of Balance Sheet for the Period 1st April 2014 to 31st March 2015 is Estimated Balance Sheet. Preparation of Balance Sheet for the Period 1st April 2015 to 31st March 2015 Projected Balance Shee

Upgrade to CAclubindia Pro. Subscribe Now!

shivaraj (student) (32 Points)
Replied 25 February 2017

thank you Mr.samir

shivaraj (student) (32 Points)
Replied 25 February 2017

I am waiting for few more replies...

Sanjay S (Chartered Accountant) (1375 Points)
Replied 28 February 2017

Provisional Statements are those financials prepared for period which are already over.

For instance, a financial statements prepared for 11 months ended 28.February.2017 can be termed as a Provisional Financial Statement.

Projected Financial Statements are those which are prepared for a future period.

For instance, an estimated statement prepared today for FY 2017-18 shall be termed as a Projected Financial Statement. This statement is prepared, taking various factors into account like expected growth rate, planned capex, other factors. This is like a budgeted statement.