Company Balance Sheet as Per Schedule 3 To Companies Act 2013 Video Lecture | Accounting for CA Foundation

Ans. Schedule 3 to Companies Act 2013 is a part of the Act that provides the format for the preparation of a company's balance sheet. It specifies the requirements for the presentation of financial statements, including the format, contents, and disclosure requirements.

Ans. A balance sheet is a financial statement that provides a snapshot of a company's financial position at a given point in time. It consists of three main sections: assets, liabilities, and shareholders' equity. The balance sheet shows how a company's assets are financed by its liabilities and shareholders' equity.

Ans. The key components of a balance sheet include: 1. Assets: These are the resources owned or controlled by the company, such as cash, accounts receivable, inventory, and fixed assets. 2. Liabilities: These are the obligations or debts of the company, such as accounts payable, loans, and accrued expenses. 3. Shareholders' Equity: This represents the owners' residual interest in the company after subtracting liabilities from assets. It includes share capital, retained earnings, and other reserves.

Ans. The purpose of Schedule 3 is to provide a standardized format for the preparation of a company's balance sheet. It ensures that companies follow a consistent presentation and disclosure format, making it easier for stakeholders to understand and compare financial information across different companies.

Ans. The disclosure requirements under Schedule 3 for a company's balance sheet include: 1. Classification of assets and liabilities: Assets and liabilities should be classified into current and non-current categories. 2. Valuation of assets: Assets should be stated at their historical cost or fair value, whichever is lower. 3. Share capital: The balance sheet should disclose the details of the company's share capital, including the number and value of shares issued. 4. Reserves and surplus: The balance sheet should disclose the details of reserves and surplus, including retained earnings, other reserves, and any changes in these balances. 5. Long-term borrowings: The balance sheet should disclose the details of long-term borrowings, including the nature, terms, and conditions of the loans. These are just a few examples of the disclosure requirements under Schedule 3. The actual requirements may vary depending on the specific circumstances of the company.