STRUCTURE OF BALANCE SHEET FOR RATIO ANALYSIS

LIABILITIES
Net Worth / Equity
Share Capital / partners
Capital / Paid up Capital /
Owners Fund.

Reserves (General Reserves,

Capital Reserves, Revaluation
Reserve and Other Reserves)
Surplus
Debit balance of Profit & Loss
A/c,
(These funds are brought in by the
promoters as their investment in
business or generated by and
retained in business).
LONG TERM LIABILITIES
Term
Loan
(Banks
or
institutions).
Debentures / Bonds.
Unsecured Loans.
Fixed Deposits
Other Long Term Liabilities
(Only those liabilities to be
taken which are not due for
payment within 12 months
from the date of the Balance
Sheet)
SHORT TERM
LIABILITIES

(OR CURRENT)

Banks Working Capital Limits.

Sundry / Trade Creditors /
Creditors / Bills Payable.
Short Duration Loans or
Deposits.
Expenses payable.
Provision
against
various
items.
Other Current Liabilities.
(Only those liabilities to be
taken which are due for
payment within 12 months

Rs.

ASSETS
FIXED ASSETS
(such as Land & Building, Plant
& Machinery etc.)
Original Value
Less Depreciation
Net value or book value or
written down value.
(These are purchased for long
term use and are depreciated
every year).
NON CURRENT ASSETS.
Investment of long term nature
in shares, Govt. Securities,
Associate or sister firms or
companies.
Old Stocks or old / disputed
book debts.
Long Term Security Deposits.
Other misc. assets which are
not current or fixed asset.
INTANGIBLE ASSETS

Patents, Good Will, Preliminary

or Pre- operative expense.

Current Assets
Cash / bank balance including
Fixed Deposits with banks.
Marketable / quoted Govt. or
other securities meant for sale.
Book Debts / Sundry Debtors /
Debtors / Receivables / Bills
Receivables
(which
are
outstanding for long time.).
Stocks / inventory (such as raw
material ,stock in process,
Finished goods, stores and
spares meant for consumption).
Advance payment of taxes,
prepaid expenses.
Other assets of current nature.

Rs.

from date
Sheet).

of

the

TOTAL

Balance
TOTAL

Case Study Number -1

Classification of Assets & Liabilities in terms of RBI Guidelines
Please classify the following items into Assets & Liabilities appropriately and draw a Balance
Sheet.
Sl.
No
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12
13.
14.
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18.
19.
20.
21
22
23
24
25
26
27
28
29
30

Description
Consumable Stores and Spares
Provision for Taxation
Prepaid Expenses
Preliminary and Pre-Operative Expenses
Reserves and Surplus
Furniture & Fixtures
Investment in Subsidiaries
Sundry Debtors outstanding less than 180days
Bill Receivables
Debtors outstanding for more than 180 Days
Stock in Process
Debentures
Unsecured Loans payable after 12 months
Bank Overdrafts
Goodwill
Installment of Term Loan payable in 12 months.
Term Loan excluding installment payable in 12 months
Paid Up Capital
Authorized Capital
Profit & Loss A/c (Debit Balance)
Raw Material
Bills Payable
Provision for Dividend
Land and Buildings
Cash and Bank Balance
Banks Cash Credit Limit outstanding balance
Sundry Creditors
Plant and Machinery
Investment in Shares (Non Govt. Security)
Finished Goods

Amount
10
4
10
4
8
6
4
20
10
10
10
20
10
20
6
10
20
32
100
10
20
20
10
40
10
30
16
14
6
10