Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)

In the notes to the Equity Share Capital in the Balance Sheet, which disclosure is required by Schedule III?

A reconciliation of the number of shares outstanding at the beginning and the end of the reporting period is required. Schedule III also asks for rights, preferences and restrictions of each class and shareholders holding more than five percent, but not director salaries or market prices.

  1. AA reconciliation of the number of shares outstanding at the beginning and end of the reporting periodCorrect
  2. BOnly the total authorised capital without share numbers
  3. CThe salary of each director holding shares
  4. DThe market price of shares at year end

Explanation

Schedule III requires disclosure of the number and amount of shares authorised, issued, subscribed and paid up, along with a reconciliation of shares outstanding at the start and end of the period. Director pay and market price are not required in this note.

Did you get it right without looking?

One question tells you little. A timed set on Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013) shows your real accuracy, how long you take and where you lose marks.

Practise Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)Free diagnostic mock

More Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013) questions