Question

The format for preparation of Profit and Loss a/c and Income statement is provided in ______ of schedule ______ of the companies act.

• A. part II, schedule II
• B. part II, schedule III
• C. part I of schedule III
• D. part A of schedule VI

Answer 1

Answer: (B)

part II, schedule III

The balance sheet of a company is prepared as per the format prescribed in part I of Schedule III of the Companies Act, 2013. The Schedule III prescribes only the vertical format for presentation of financial statements. Thus, a company will now not have an option to use horizontal format for the presentation of financial statements.