How to show format of balance sheet as per companies act 2013?

A balance sheet of a company is a financial statement that depicts the assets, liabilities and shareholders’ equity of the company at a point of time, usually at the end of the accounting year. A balance sheet of a company is reported in a vertical format which is different from that of a partnership where the horizontal format is used.

COMPONENTS OF A BALANCE SHEET

The three main components of a balance sheet are Assets, Liabilities and Shareholders’ equity.

• Assets: They are divided into two main categories that are current assets and non-current assets. If an asset is expected to be realised within 12 months or is primarily held for being traded, or is cash or cash equivalent, then those assets are termed as current assets. All assets that are not current assets are grouped under non-current assets. They are normally realised after 12 months.
• Liabilities: They are categorised as current liabilities and non-current liabilities. If the amount owed by the company to an outside party is due to be settled in 12 months, then it can be termed as a current liability. The rest of the liabilities are referred to as non-current liability.
• Shareholders’ Equity: This is the money owed to the owners of the company, that is shareholders. It is also called net assets since it is equal to the difference between total assets and total liabilities. Their main categories are Shareholders’ Capital and Reserves and Surplus.

FORMAT OF BALANCE SHEET

As per the Companies Act 2013, the following format should be used for preparing a balance sheet.

From the above Balance sheet, we should get:

Assets = Liabilities + Shareholders’ Equity

Relevant notes for each component should also be prepared when necessary.