ASSIGNMENT 4

PART 1 – Balance Sheet

 Balance Sheet is one of the reports of a financial statement which provides the
financial condition on a given date.

 An entity’s balance sheet provides a lot of information which can be used to analyse
the financial stability and business performance.

 The three important sections of any balance sheet are:

o Assets – This is a resource owned by an entity to produce positive economic
value.
o Liabilities - This provides a list of debts an entity owes to others.
o Capital or Equity- This is the amount invested by the shareholders

FORMAT:

Name of the Company:

Balance Sheet of: As at:
DATE OF
FINANCIAL YEAR
TERMS Figures as at the end of Figures as at the end of
current reporting period previous reporting period
I. ASSETS
Non-current assets
(1)   (a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under
development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets
(2) Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short-term loans and advances
 (f) Other current assets
                                         TOTAL
I I. EQUITY AND LIABILITIES
(1) Shareholders’ funds
(a) Share capital
(b) Reserves and surplus
(c) Money received against share
warrants
(2) Share application money pending
allotment
(3) Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (Net)
(c) Other Long-term liabilities
(d) Long-term provisions
(4) Current liabilities
(a) Short-term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short-term provisions
TOTAL

TERMS:

 DEFFERED TAX ASSETS:

o Deferred tax assets originate when the amount of tax has either been paid or
has been carried forward but it has still not been acknowledged in the
statement of income.

 CASH EQUIVALENT:
o Cash equivalents are investments that can readily be converted into cash.
o The investment must be short term, usually with a maximum investment
duration of three months or less. If an investment matures in more than three
months, it should be classified in the account named "other investments."
o For Example:
 Commercial paper
 Marketable securities
 Money market funds
 Short-term government bonds
 Treasury bills
 SHARE WARRANT:
o A Share Warrant is a document issued by the company under its common
seal, stating that its bearer is entitled to the shares or stock specified therein.

 LONG TERM PROVISIONS: 

o Long term provisions are usually money set aside for employee benefits such
as gratuity; leave encashment, provident funds etc.

 RESERVE AND SURPLUS:

o Reserves and Surplus are all the cumulative amount of retained earnings
recorded as a part of the Shareholders Equity and are earmarked by the
company for specific purposes like buying of fixed assets, payment for legal
settlements, debts repayments or payment of dividends etc.