Worked Solution
✓ VerifiedNote: The question statement is incomplete. While it mentions 'provides the following particulars,' no specific figures, data, or additional information (equity shares amount, asset values, liability amounts, call in arrears, unsecured loan amounts) have been provided. A complete Balance Sheet cannot be prepared without this data.
Framework for Preparing Balance Sheet under Schedule III, Companies Act, 2013:
The Balance Sheet of Hari Ltd. as on 31st March, 2022, would follow the format prescribed in Schedule III to the Companies Act, 2013 (as amended), which uses a vertical format with current and non-current classification.
**Structure:
EQUITY AND LIABILITIES** would comprise:
Equity: Equity share capital (showing authorized and issued), reserves and surplus (retained earnings, securities premium, capital reserves, etc.).
Liabilities (Current and Non-Current): Current liabilities include trade payables, short-term borrowings, short-term provisions. Non-current liabilities include long-term borrowings, deferred tax liabilities, long-term provisions.
ASSETS would comprise:
Non-Current Assets: Property, plant and equipment, investment property, intangible assets, financial assets (investments, loans), deferred tax assets, other non-current assets.
Current Assets: Inventories, financial assets (trade receivables, cash and cash equivalents), current tax assets, other current assets.
Key Points for This Question:
Equity Share Capital: Show authorized capital in notes, issued capital on face of balance sheet. Call in arrears (calls not paid by shareholders) should be deducted from equity share capital or shown as a separate deduction in the equity section, not as an asset.
Unsecured Loans: Classify as current or non-current based on repayment terms. If repayable within 12 months of the balance sheet date, classify as current liability; otherwise, as non-current liability.
Schedule III Compliance: Use prescribed headings and sub-headings. Maintain consistency with previous year's comparatives. Provide disclosure notes as required.
To Complete This Question: Please provide the specific particulars including: (1) authorized and issued equity share capital; (2) call in arrears amount; (3) list of all assets with values; (4) list of all liabilities with amounts; (5) unsecured loan details; (6) reserves and surplus; (7) any other relevant information. Once data is provided, a detailed Balance Sheet with proper classification and presentation can be prepared in Schedule III format.
Write it like this
1The skeleton
- Start with the Schedule III heading line — write 'Balance Sheet of Hari Ltd. as at 31st March, 2022 (as per Schedule III to the Companies Act, 2013)' as your title; examiners tick the format compliance box in the first 3 seconds.
- Draw the two-column vertical format: Equity & Liabilities on top, Assets below — this is non-negotiable; any horizontal/T-format kills your presentation marks even if every figure is right.
- Handle Call in Arrears right away in Note to Equity Share Capital — deduct it from Subscribed & Called-up capital to arrive at 'Subscribed, Called-up and Paid-up'; show it as a working in the note, not as a separate asset on the face.
- Classify Unsecured Loans as Current or Non-Current based on the 12-month rule — state the basis explicitly ('repayable within 12 months → Current; otherwise → Non-Current') so the examiner sees your classification logic, not just the number.
- Close with the totals check line — both sides must tally and you write 'Total Equity & Liabilities = Total Assets = ₹X'; this one line signals you've self-verified and earns the final presentation mark.
2Examiner-rewarded phrases
3Common trap
Heads up — most students show Call in Arrears as an asset under 'Other Current Assets' (like the old Companies Act style). That's wrong under Schedule III and loses you marks directly; it must be deducted inside the Equity Share Capital note on the liabilities side itself.