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Chapter: 12th Accountancy : Financial Statement Analysis

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Financial statements of companies

Following provisions of the Indian Companies Act, 2013 have to be followed while preparing the financial statements of a company:

Financial statements of companies

 

Following provisions of the Indian Companies Act, 2013 have to be followed while preparing the financial statements of a company:

i.            As per Section 2 (40), financial statements include balance sheet, profit and loss account / income and expenditure account, cash flow statement, statement of changes in equity and any explanatory note annexed to the above.

ii.            Section 129 (1) of the Indian Companies Act, 2013 states that the financial statements shall give a true and fair view of the state of affairs of the company and shall comply with the Accounting Standards notified under section 133.

iii.            Section 129 (1) also states that the financial statements shall be prepared in the form provided in schedule III of Indian Companies Act, 2013.

Note: Statement of profit and loss (Part II of Schedule III) and Balance Sheet (Part I of Schedule III) have been given only for understanding purpose and not for examination.

Schedule III of the Companies Act, 2013

PART II – STATEMENT OF PROFIT AND

LOSS Name of the Company …………………

Profit and loss statement for the year ended ……………

 (Rupees in ……..)


 

PART I – BALANCE SHEET

Name of the Company…………..

Balance Sheet as at……………...

(Rupees in…………..)



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