explain the various elements of balance sheet
The elements of a balance sheet consists of:
A. Shareholder Funds
1. Share Capital consists of authorised capital, subscribed capital and Issued capital equity and preference share.
2. Reserves and Surplus consists of Capital Reserve, Debenture Redemption, Capital Redemption Reserve, Tax Reserve, General Reserve and Share warrants. Share warrants provide the holder to have ownership of equity shares of a company. When money is received from selling share warrants it is called as money received against warrants.
B. Share Application money pending allotment: It refers to application on which allotment is pending but amount is received. It takes place when a company issues equity shares publicly in order to raise funds.
C. Non-Current Liabilities: It consists of following items: long term borrowings, deferred tax liablities, long term provisions and other long term liabilities.
D. Current liabilities: It consists of following items: short term liabilities, trade payables, short term provisions
E. Assets which include Non-current and Current Assets. Non-current assets can be long term loans, plant, machinery, furniture, goodwill etc. while current assets are investment is shares and debentures, finished goods, raw materials, cash and cash equivalents, bank balance, cheques not encashed, short-term.
The elements of a balance sheet consists of:
A. Shareholder Funds
1. Share Capital consists of authorised capital, subscribed capital and Issued capital equity and preference share.
2. Reserves and Surplus consists of Capital Reserve, Debenture Redemption, Capital Redemption Reserve, Tax Reserve, General Reserve and Share warrants. Share warrants provide the holder to have ownership of equity shares of a company. When money is received from selling share warrants it is called as money received against warrants.
B. Share Application money pending allotment: It refers to application on which allotment is pending but amount is received. It takes place when a company issues equity shares publicly in order to raise funds.
C. Non-Current Liabilities: It consists of following items: long term borrowings, deferred tax liablities, long term provisions and other long term liabilities.
D. Current liabilities: It consists of following items: short term liabilities, trade payables, short term provisions
E. Assets which include Non-current and Current Assets. Non-current assets can be long term loans, plant, machinery, furniture, goodwill etc. while current assets are investment is shares and debentures, finished goods, raw materials, cash and cash equivalents, bank balance, cheques not encashed, short-term.
