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.
The current portion of the Non current liabilities is grouped under this head
(c ) Other current liabilities….
Likely the Current portion of Non current assets is grouped under this head
( 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.
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.
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.