Format of Balance Sheet Part 3

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Balance Sheet of ……….. As on …………..

Balance Sheet
Title: Balance Sheet

Liabilities

Amount (Rs.)

Assets

Amount (Rs.)

Rent Outstanding

Salary Outstanding

Subscription Received in Advance

Building Fund

Capital Fund/General Fund

Add: Life membership fee

Add: Surplus

(or)

Less Deficit

Cash in hand

Cash at bank

Fixed Deposits

Subscription Outstanding

Sports Material

Books

Furniture

Building

Points to Be Kept in Mind While Preparing Balance Sheet:

  • Assets appearing in the preceding year balance sheet need to be adjusted for any sale or purchase of the asset made during the year and the depreciation provided on the particular asset. Only the adjusted amount will appear in the Balance Sheet of the current year.

  • New Asset purchases taken from Receipt & Payments A/c to Balance Sheet.

  • Total loan raised appear on receipt side of R&P A/c is shown in Liability side of Balance sheet as Net amount. In the same manner if any advance has been made or some repayment has been made by a person, it will be shown on the Asset side of the Balance sheet as the net amount.

  • Any adjustments regarding expenses and/or regarding incomes such as outstanding or prepaid will be shown in the Balance Sheet.

  • Any item of liability appearing in the previous year Balance Sheet will be shown at its net value i.e. after deducting from it the amount paid against them.

  • Donations for Building i.e. Special Receipts are treated as liabilities and appear in Liability side of the Balance Sheet.

Example:

Information as on 31st December, 2006 of ‘All Green Ever Green’ an NGO working for the preservation of forests is given as under:

Balance Sheet
Balance Sheet Question

Details

Amount Rs

Cash in hand

1400

Cash at Bank

21800

Books

78000

Furniture

16000

Computer

24000

Subscription outstanding

2600

Fixed deposit with Bank

100000

Subscription Received for 2007

3800

Rent outstanding

4000

Publicity fund

35000

Building fund

80000

Solution:

Balance Sheet of ‘All Green Ever Green’ As on 31st Dec, 2006

Table of Balance Sheet of ‘All Green Ever Green’ as on 31st Dec, 2006
Title: Table of Balance Sheet of ‘All Green Ever Green’ As on 31st Dec, 2006

Liabilities

Amount (Rs.)

Assets

Amount (Rs.)

Rent Outstanding

Subscription Received in Advance

Publicity Fund

Building Fund

Capital Fund/General Fund

(Balancing figure)

3800

4000

35000

80000

121000

Cash in hand

Cash at bank

Fixed Deposits with Bank

Subscription Outstanding

Books

Furniture

Computer

1400

21800

100000

2600

78000

16000

24000

2,43,800

2,43,800

Difference between Receipts & Payments A/c and Income & Expenditure A/c:

Table of Difference between Receipts & Payments a/C and Income & Expenditure a/C
Title: Table of Difference between Receipts & Payments A/c and Income & Expenditure A/c

Basis of Difference

Receipts & Payments A/c

Income & Expenditure A/c

Nature

Summary of Cash Book

Summary of Revenue Income and Expenditures

Side

Debit side- Receipts

Credit side- Payments

Debit side- Expenses

Credit Side – Incomes

Opening Balance

Start with O/p balance of Cash in hand and cash at bank.

No balance in the beginning

Closing Balance

Balance of Cash in hand and cash at bank.

Closing balance as either Surplus or Deficit.

Capital & Revenue Items

It records both Capital and Revenue items.

It records only revenue items.

Adjustments

Not considered while preparing it.

Consider while preparing it.

7 Transfer of Closing Balance

Transferred to the Receipts and Payments A/c for the next period.

Transferred to Capital Fund/ General Fund in the Balance Sheet.