In new format of B/s i.e. Vertical form, profit should be added in share capital fund or in reserve in case a prop. firm?
Further in Long term borrowings incl both Sec. & Unsec. Loan?? and should Bank OD a/c bal. in to be incl. in long term borrowing or in short term borrowing? all is in case of a prop. firm
For Proprietor ship firm,New Schdeule-VI not applicable, if you want to prepare as per the schedule,add profit to capital and disclose in a way of adding to capital.
Bank O.D should always be short term,since it is reviewed every year. As per as both secured and unsecured comes underlongterm loans only when they are payable for a period of 3 to 7 years.
| Originally posted by : siva sankar reddy | ||
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For Proprietor ship firm,New Schdeule-VI not applicable, if you want to prepare as per the schedule,add profit to capital and disclose in a way of adding to capital. Bank O.D should always be short term,since it is reviewed every year. As per as both secured and unsecured comes underlongterm loans only when they are payable for a period of 3 to 7 years. |
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AGREED
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