CBSE Class 12 Implementation Of Schedule VI Of Companies Act Notes

Scroll down for PDF

CBSE Class 12 Implementation Of Schedule VI Of Companies Act Notes. Learning the important concepts is very important for every student to get better marks in examinations. The concepts should be clear which will help in faster learning. The attached concepts made as per NCERT and CBSE pattern will help the student to understand the chapter and score better marks in the examinations.



General Instructions-

• Revised Schedule VI applicable on all the companies with effect from 1stApril, 2011

• In case of any controversy, Accounting Standards will prevail over the Schedule;

• Only Vertical format of Balance Sheet is prescribed;

• Prescribes minimum disclosure requirements in the Balance Sheet. All other disclosures as required by the Companies Act, 1956 shall be made in the notes to accounts in addition to the requirements set out in this Schedule.

• Shareholding of more than 5% shares in the company now needs to be disclosed;

• Share allotments for non-cash consideration, buy back to be disclosed;

• Where the normal operating cycle cannot be identified, it is assumed to have duration of twelve months. New name for P & L Account is “Statement of Profit and Loss”;

• Format for Statement of Profit and Loss has been prescribed  Segregation of Revenue components into revenue from:

-sale of products,

-sale of services, and

-other operating revenues

Equity and Liabilities

• Liabilities side of Balance Sheet is known as ‘Equity and Liabilities’ and shown as Part A of Balance Sheet (Vertical Form)

• Current/ Non-Current Distinction-- If entity does not have unconditional right to defer settlement of liability for at least 12 months after reporting period, it will be treated as


• All expenses or provisions or advances or loans etc. which are accrued and payable within 12 months are current liabilities.

• Provisions to be shown under Long – term provisions and Short-term provisions.

• Loss from Statement of Profit and Loss is to be deducted from existing credit balance in Statement of Profit and Loss under ‘Reserves and Surplus’.

• If the net amount after transfer, results is negative amount, it is shown as negative amount under the head Statement of Profit and Loss.

• Statement of Profit and Loss (Dr. Balance) will be disclosed under the head “Reserves and Surplus”.

• Share application money pending allotment is not a part of Shareholders’ Funds; Assets

• All items of assets and liabilities are to be bifurcated between current and non-current portions and presented separately on the face of the Balance Sheet.

 Fixed assets were shown under one broad category i.e. fixed assets. Fixed assets are

classified into:

Tangible Assets;

• Intangible Assets;

• Capital Work – in – progress;

• Intangible Assets under Development.

• Provision for Doubtful Debts is not deducted from Trade Receivables but is shown as short-term Provisions under Current Liabilities.

• Loose Tools is to be classified as ‘Inventory’ under Current Assets.

• “Sundry Debtors” has been replaced with the term “Trade Receivables”;

• Disclosure of trade receivables outstanding for a period exceeding six months from the date of bill/invoice is due for payment;

• Separate head for Intangible Assets and Intangible Assets under Development;

• Capital Advances have to be shown separately under “Loans and Advances” instead of Fixed Assets;

Please click the link below to download pdf file for CBSE Class 12 Implementation Of Schedule VI Of Companies Act Notes.


Click on the text For more study material for Accountancy please click here - Accountancy

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

Extension of dates by CBSE for Single Girl Child Merit (SGC) scholarship

CBSE has announced to extend dates for SGC scholarship. Previously the dates to submit the SGC scholarship form were 18 October 2019. Now dates have shifted. For online submission, the last date is 31st October. Whereas date for submission of hard copies of renewal...

CBSE Board Secretary says Class 10 and 12 CBSE Exam Pattern to be modified

The Central Board of Secondary Education is expected to introduce a few changes to the exam pattern for class 10 and board exams by 2023. Anurag Tripathi, secretary of CBSE speaking at an Assoham School Education Summit said that although this year class 10 students...

How to crack a competitive examination

“How I crack a competitive examination” is a frequently asked question by today’s students. Cracking a competitive exam is a challenging task. Attaining a huge amount of study and solving several complex problems in a limited amount of time is a huge task. Competitive...

Seven Motivational tips for every student

If you’re are a student or a learner and you doesn’t feel like study then this article is going to be very important for you, Reading constantly and Staying motivated as a student is one of the most challenging tasks and barriers to educational success. Education is...

JEE in Punjabi too after English, Hindi and Gujarati

Punjab Minister Tript Rajinder Singh Bajwa requested the joint technology entrance exam (main) to be conducted in Punjabi and other regional languages too. In his letter to Union HRD Minister Ramesh Pokhriyal Nishank, the Punjab Minister for Higher Education and...

Studies Today