25 May 2010
Sir, What are the things to be kept in mind while prepairing 1. Projected Balance Sheet & Profit & Loss A/C 2.Estimated Balance Sheet & Profit & Loss A/C Is it That while prepairing estimated balance sheet & Profit & Loss A/c round off figures cannot be given but which can be given in case of projected balance sheet & Profit & Loss A/c
25 May 2010
Projected Balance sheet & P/L should be made on the same principles as the actual B/s & P/L of the last year. Previous figures and trends (may be of last 5 years)can be taken as base for the projected figures. Also, if any special transactions occured during the year (eg. any asset purchased, major order recd which leads to increase in sales or any major loss occured during the year)should be considered and the projected amount should be adjusted with the same.
In case of Estimated Balance sheet we consider the events that have been occured till the date of preparartion of the balance sheet. for eg. if we are preparing the Balance sheet today i.e 30th June, 2010...Then for the year ending on 31st March, 2011 we will call it estimated balance sheet and the sales, purchase and other transaction actually occured till 30th june will be considered and the estimated figures are added for the rest of the year. In such case, balance sheet for the next year will be projected balance sheet.
Because of the above explained, since estimated balance sheet includes the actual transaction for the year so far, they generally don't show the round off figures, because the transactions occured so far are not round off.. I hope it clarifies your doubt.
CAclubindia
