In my previous posting,I briefly given the idea about current and non current bifurcation incompliance with revised schedule VI requirement.      In this article, I tried to give an illustrative example how to solve this problem in a simple way.

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The current portion of the Non current liabilities is grouped under this head

 

Current liabilities

     (c )   Other current liabilities….

    Likely the Current portion of Non current assets is grouped under this head

Current assets  

    

   ( f  )   Other current assets…..

  The above grouping is arrived by deducting the current portion from the non current portion.  In order to fulfil our requirement , the manual intervention is unavoidable.     

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Based on the  above structure any bifurcation  required at the quarter end can be posted in the GL code starting with “C” followed by the Original gl code.   

For example

 

A term Loan @ 9%  for Rs. 10 Crore   repayable  31.12.2014

Entry to be made on 31.3.2014

Term Loan 9%     :         206000     DR.  10,00,00,000

                       

                                    C206000   CR. 10,00,00,000

 

Now  Current Liabilities  Term Loan 9% :     GL C206000 :10,00,00,000

On 1.4.2014   this entry can be reversed and placed in the Original GL code :

C206000     Dr. 10,00,00,000

   206000     CR. 10,00,00,000

The reversal can be easily done through recurring entry programme at the beginning of the financial year. 

So that  all the Current portion of the non current will be cleared and posted in a single GL for control purpose. .  I request the experts to give their valuable
comments in this topic.                          
N.Selvakumar.

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3 Comments

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  1. Devavrat Salvekar

    Dear Selvakumar, Thanks for sharing this document. It’s very simple to understand & easy to implement. However, One of my client has a similar requirement. They want the presentation of their Balance Sheet as per Revised schedule VI Format. When I was analyzing their structure of their Balance Sheet I found that many of their Term Loan Accounts from Current Liabilities are Reconciliation Account & that’s why we can not go for JV. Also a single Recon. Account assigned to 10 separate vendors & each vendor contains two portions 1. Current Liability 2. Non-Current Liability So, in our case it’s looking impossible to bifurcate Current & Non-Current Liabilities. Do you have any solution for this issue? Pl. help me out on this. Regards, Dev

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    1. Selvakumar Natarajan Post author

      dear devarat ,    for this purpose vendor wise details not required .   This demarcation is required only to exhibit current and non current.  A dummy vendor account can be used for this purpose .  All current / non current balances can be transferred to this dummy vendor and clear this dummy vendor after the reporting date.  Hope this will clear your problem. regards .. Selvakumar.N.

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