Schedule3 Balance Sheet Preparation Made Easy

In this blog, we talk about how to prepare Schedule3 balance sheet using LedgerFusion software. LedgerFusion connects to Tally, Zoho, Busy, Miracle. You can also upload Trial Balance and Ledger Master from your respective Accounting Software to prepare Schedule3 Balance Sheet.

Introduction

Section 129 of the Companies Act, 2013 underscores the importance of financial statements providing a true and fair view of a company's financial status. To adhere to this requirement, companies must follow the accounting standards in section 133 and the prescribed format from Schedule III. For companies, creating financial statements in line with Schedule3 is a critical task, and LedgerFusion software offers an all-in-one solution. In this blog, we'll explore the key features of LedgerFusion that simplify the process of creating financial statements as per Schedule 3.

 

Key Features of Preparation of Schedule 3 Balance Sheet

Individual Schedule with Notes Number

LedgerFusion ensures that individual schedules within financial statements are correctly numbered, providing an organized and structured approach to presenting financial data.

schedule3 - share capital note

Schedule3 - Significant Accounting Policy

The software facilitates the inclusion of significant accounting policies in financial statements. This feature enhances transparency and ensures stakeholders have a clear understanding of the company's accounting practices.

significant notes

Cash Flow as per Indirect Method

LedgerFusion streamlines the preparation of the cash flow statement, following the indirect method. This method is essential for providing insights into a company's liquidity.

cash flow

MAT (Minimum Alternate Tax) and Income Tax Calculation

LedgerFusion calculates MAT or income tax, ensuring accurate representation of tax provisions in financial statements.

Straight Line Method for Depreciation

The software simplifies the calculation of depreciation based on the straight-line method. It considers the number of days assets have been used and their life in days. Users provide purchase dates, asset lifespans in years, and salvage values in percentages.

company law depreciation schedule

Income Tax Depreciation

LedgerFusion computes income tax depreciation, providing an accurate representation of depreciation expenses.

Income Tax Depreciation

Blank Sheet of Disallowance

The software offers a blank sheet for disallowances, allowing users to manually input any disallowed expenses. This feature ensures accurate accounting for disallowances.

Deferred Tax Calculation

LedgerFusion provides a comprehensive solution for deferred tax calculations, covering both assets/liabilities and income/expenditure. This ensures that deferred tax is accurately represented in financial statements.

deferred tax

Benefits of Automating Balance Sheet Preparation

LedgerFusion offers numerous benefits for companies preparing financial statements under Schedule 3:

Accuracy: The software ensures that financial statements are accurate, compliant, and transparent.

Efficiency: Automation streamlines the preparation process, saving time and reducing errors.

Tax Compliance: Calculation of MAT, income tax, and depreciation ensures tax provisions are correctly represented.

Transparency: Inclusion of significant accounting policies and disallowances enhances transparency.

Structured Presentation: Numbering of individual schedules and organized presentation improve the clarity of financial reports.

Deferred Tax Calculation: Comprehensive deferred tax calculation ensures accurate representation in financial statements.

In conclusion, LedgerFusion simplifies the process of creating financial statements as per Schedule 3, offering accuracy, efficiency, and compliance. It enhances transparency and ensures that financial reports provide a true and fair view of a company's financial status.

Reference: General Instructions for Preparing Schedule3 Balance Sheet

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