Seybold Report ISSN: 1533-9211
Dr.B.GiriBabu, Dr. Mayank Kumar, Dr.G.Sowmiya, CMA Sharad Gautam, Dr Manminder kaur, Dr. B. Madhusudhan Reddy
Vol 18, No 8 ( 2023 ) | Licensing: CC 4.0 | Pg no: 99-109 | Published on: 13-08-2023
Abstract
A company's financial health can only be accurately reflected in final accounts when all necessary modifications have been made. When these corrections are applied, a company's financial statements are brought into line with its true financial condition. The way in which balance sheets are prepared within Schedule VI is significantly affected by final accounts with revisions. A company's financial statements must meet the standards outlined in Schedule VI of Companies Act 1956. (as amended in 2011). A corporation's balance sheet and accompanying final accounts must be prepared in accordance with Schedule VI, and they must correctly reflect the company's financial health. The balance sheet is affected in several ways by the closing adjustments. Adjustments like as provisions for bad debts, depreciation, and deferred tax obligations influence the value of both the assets and the liabilities on the balance sheet from the outset. Second, retained profits upon that balance sheet reflect the impact of these adjustments to the income statement. Hence, the preparation of a balance sheet under accordance therewith Schedule VI is only somewhat impacted by the closing accounts, inclusive of modifications. Accurate financial statements provides investors, creditors, and others in a company's orbit the data they need to make well-informed decisions.
Keywords:
Finance, Transaction, Schedule VI, Company, Account