Revised schedule VI current and non current
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.
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
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.
Hi Selvakumar, Thanks for your quick reply. I think this will help me. Will update you on this. Thanks Regards, Dev