Schedule VI of the Companies Act

Please refer Schedule VI Part II Clause no. 3(i)(a) and Clause NO. 4D (e).

In the preparation of financial statements we have to see that material features are disclosed.

Nikunj Rathi

Schedule II quite clear about it.

hey thanks

Mr. Rathi & Mr. Rajesh

Dear Nikunj,

I want to ask that as per Schedule VI Part II, whether the aggregate sales must include the Excise Duty or not ?

Means as we know that the excise duty is our liability and I want to put the Excise Duty under Duties & taxes (Current Liability) then at the time of preparing P & L A/c, whether I ahve to Grossup the sales or not.

Means my entry is like :-

Party A/c (under Sundry Drs.) Dr. xxxxxx

Sales A/c (under Sales / Revenue) Cr. xxxxxx

Excise duty A/c (under Duties & Taxes, C.L. ) Cr. xxxxxx

C.S.T. A/c (under Duties & Taxes, C.L. ) Cr. xxxxxx

Is the entry and A/c Groups are correct or not ?

Hi Aabid Hashmi,

answer to you question would be as follows:

a) we need to show the sales after deducting the excise duty from the invoiced sales.

b) as you have correctly said, excise duty is the liability of the company and it is always deducted from the amount of sales as it inflates the sales amount.

Dear All,

I do not mean to ask that we have to show the sales after deducting Excise.
I want to know as per Schedule VI part II, whether the sales should be shown as gross and then deduct the Excise to make it net OR we can show net sales directly ?

Do we need to show Secured Loans and Unsecured Loans and Depreciation in the Balance Sheet as NIL?