Events after the balance sheet date (AS 4): adjust or disclose, with 14 real examples
The AS 4 test for events after the year end: a decision table of 14 real events, a worked adjusting entry, sample wording, and the SA 560, SA 570 and SA 580 checks before signing.
Other current and non-current assets: GST, TDS, prepaid and deposits, where each goes
Where GST credit, TDS, advance tax, prepaid expenses, deposits and unamortised costs belong under Division I, where ICAI's Guidance Note and practice differ, with a worked note that adds up.
Section 8 company accounts: income and expenditure account under Schedule III
How a section 8 company reports under Schedule III: a worked income and expenditure account, corpus and grants, surplus, cash flow, CARO, Rule 11, IFC, and what G.S.R. 466(E) does not relax.
Depreciation under Schedule II: useful lives, residual value, SLM vs WDV, with examples
Part C lives, the 5% residual rule, extra shifts, the WDV rate formula, components, used assets and change of method, with worked calculations and a review checklist.
Previous year figures in Schedule III: regrouping, reclassification and first-year accounts
Regroup or prior period item? The Schedule III comparatives rule, the first-year exception, a before/after example, note wording, and the auditor's duties under SA 710 and SA 510.
Cash flow statement under AS 3: indirect method worked example and who is exempt
Who may leave out the cash flow statement, how AS 3 classifies interest, dividends and taxes, and a full indirect method example that ties to the balance sheet.
Significant accounting policies note: what to write, with sample wording (AS 1)
What AS 1 and the Act require in note 2, why last year's copy fails, sample wording for ten policies, and a checklist tying each policy to the actual ledgers.
Keep a Fixed Asset Register Next to Tally or Pay for It at Audit
Tally keeps one ledger per asset class; the register keeps the assets. The columns, a sample tied to Tally, the tax block working and a routine for the year.
Who signs the balance sheet: section 134, directors, CFO, CS, auditor and UDIN
Section 134(1) in plain terms: who signs by company type, the order of Board and audit report dates, what the auditor's signature carries, UDIN rules and the penalty.
LLP, partnership and proprietor accounts: the ICAI Guidance Note format, year by year
Which firms, proprietors and LLPs ICAI's format covers and from which year, how it differs from Schedule III, which AS apply, and what the auditor reports if it is not followed.
Closing Stock in Tally vs the Balance Sheet: Why They Don't Agree
The usual reasons Tally's stock summary, the audited closing stock and the bank's stock statement differ, with a worked reconciliation and the Tally set-up that prevents them.
From Schedule III to AOC-4: which figures go where, and what to check before filing
Which AOC-4 variant applies, due dates and Circular 05/2026, how Schedule III lines map to the form, why figures differ, and what to check before filing.
Schedule III amendment 2021: every change for Division I companies, in one table
Every change G.S.R. 207(E) made to Division I of Schedule III, from rounding and current maturities to ageing, promoters' shareholding, the fourteen regulatory items and CSR, with old and new wording and what it means for FY 2025-26.
Statement of profit and loss format under Schedule III: every line, with an example
Every line of the Division I Statement of Profit and Loss as amended, the General Instructions and Note 5, a full worked example with discontinuing operations and EPS, and how a Tally P&L maps.
Schedule III compliance checklist: every Division I disclosure, line by line (FY 2025-26)
A line-by-line Division I disclosure checklist: general instructions, Balance Sheet notes A to Y with the fourteen regulatory items, and the Statement of Profit and Loss notes, each with its reference and a Y/N/NA column.
Earnings per share under AS 20: basic, diluted and the Schedule III disclosure
Basic and diluted EPS under AS 20 — weighted average shares, bonus and rights issue restatement, potential equity shares, the SMC relaxation, the Schedule III face line and two worked examples.
Set Up TDS Ledgers in Tally So 26AS Matches at Year-End
TDS payable and receivable ledgers in Tally, the switch to section 393 from April 2026, a 15-minute monthly check and the year-end 26AS / Form 168 match.
CSR, crypto currency and undisclosed income notes under Schedule III
The three P&L additional information items added in 2021, with the exact list for each, a worked CSR example, section 135 applicability, unspent CSR deadlines, nil wording and the CARO link.
Exceptional, extraordinary and prior period items under Schedule III and AS 5
Where exceptional and extraordinary items sit on the face of the Division I profit and loss, how AS 5 defines them and prior period items, ten items classified, a worked presentation and the Ind AS 8 differences.
Deferred tax under Schedule III and AS 22: presentation and the note
Where deferred tax assets and liabilities sit under Division I, the AS 22 recognition tests, offsetting, MAT credit, a full worked computation and the note format.
Give Every Director and Relative Their Own Ledger. Here's Why
Why each director and relative needs separate loan, remuneration, rent and current account ledgers in Tally, where to group them, and the related party master to keep alongside.
Contingent liabilities and commitments under Schedule III and AS 29
The Division I contingent liabilities and commitments headings, the AS 29 provision test, tax demands, guarantees, a format note and eight items classified, tied to Rule 11(a) and CARO 3(vii)(b).
Cost of materials consumed, purchases and changes in inventories under Schedule III
The three Division I stock-related expense lines, the broad-head notes, the sign convention, worked numbers for a manufacturer, trader and mixed business, and common slips.
Is Tally's Edit Log On? Your Auditor Has to Report It Now
Which Tally meets the audit trail rule, how the client should set it up, the quick Edit Log check a CA can do, and what to report when the log was off for part of the year.
Employee benefits expense and finance costs under Schedule III
The four employee benefit sub-heads, the three parts of finance costs, where tax interest, MSME interest, bank charges and directors' fees go, AS 15 and AS 16 points, and a format of both notes.
Name Your Tally Ledgers This Way and Mapping Takes Minutes
How to name Tally ledgers so a trial balance maps straight to Schedule III lines — with 14 before-and-after names, rename rules and aliases.
Investments under Schedule III: non-current and current, quoted and unquoted
The Division I non-current and current investments notes, trade vs other, quoted and unquoted aggregates, AS 13 measurement, partnership firm details and a worked FY 2025-26 note.
Cash and cash equivalents and other bank balances under Schedule III
The Division I cash note, why ICAI splits it into cash and cash equivalents and other bank balances, the fixed deposit classification, overdrafts and a worked note.
Ageing schedule format in Excel for Schedule III: receivables and payables
The Schedule III receivables and payables ageing grids ready to copy, and how to build them in Excel from a Tally bill-wise export, with formulas, a worked example and the checks.
Mapping Tally groups to Schedule III heads: a ledger-by-ledger guide
All 28 predefined Tally groups mapped to Division I heads, the ledgers inside each that usually belong elsewhere, worked splits and a mapping checklist.
Inventories under Schedule III: classification, valuation note and goods in transit
The Division I inventories note sub-head by sub-head, where goods in transit go, the AS 2 cost and NRV rules, a worked valuation, and the links to stock statements, ratios and CARO.
Other current liabilities and provisions under Schedule III: what belongs where
The Division I other current liabilities list, what is not a trade payable, provisions versus accruals, the employee benefit split and a worked note with figures.
Other expenses under Schedule III: the 1% rule and payments to the auditor
The eight items always shown separately, the 1% of revenue or ₹1,00,000 test worked through, the six heads of payments to the auditor, GST on audit fees, and a full format of the note.
Reserves and surplus under Schedule III: negative surplus, securities premium and other reserves
The Division I reserves and surplus note: the eight sub-heads, movements, the debit balance of profit and loss, restrictions on each reserve and a worked surplus reconciliation.
Loans and advances under Schedule III: related parties, capital advances and loans repayable on demand
The Division I long-term and short-term loans and advances notes, capital advances, advances in the nature of loans, the related party table and a worked example.
Four Clauses, Maximum Fine: ICAI Order on Deposits Booked as Loans, Group Loans and Working Papers Left with the Old Firm
Public money booked as loans, interest-free loans to group companies, and working papers that stayed with the firm he had left. Four clauses, a ₹5 lakh fine and one year off the Register, and four lessons for any audit.
Schedule III ratio calculator: the 11 ratios computed from your trial balance
One example company taken from trial balance to all eleven Schedule III ratios for both years, the 25% variance flags, sample explanations and the Excel formulas.
Additional regulatory information under Schedule III: all 14 items explained with examples
All fourteen Division I additional regulatory information items, from title deeds and benami property to struck-off companies and intermediaries, with formats, nil wording, evidence and the CARO link for each.
Revenue from operations vs other income under Schedule III: what goes where
The Division I revenue and other income notes, GST and excise presentation, other operating revenue vs other income, AS 9 basics, 20 items classified and a worked example.
"Trivial and Innocuous," Said the Auditor: ICAI Holds Materiality Does Not Override Required Disclosures
Missing investment details, foreign exchange earnings and a managing director's signature, under a report that said the accounts complied. Why "trivial" did not work, and four lessons for Schedule III audits today.
Borrowings under Schedule III: long-term, short-term and current maturities explained
The Division I long-term and short-term borrowings notes, where current maturities go since 2021, a term loan EMI split and the borrowing-linked regulatory items.
Property, plant and equipment and CWIP ageing under Schedule III: the reconciliation and schedules
The Division I PPE note line by line — classes, the gross-to-net reconciliation, title deeds, registered valuer, and the CWIP ageing and completion schedules — with worked examples and tie-outs.
Schedule III format in Excel: balance sheet, profit and loss and notes for FY 2025-26
The complete Division I balance sheet, Statement of Profit and Loss and notes skeleton as tables for Excel, how to link and check them, and the template slips to avoid.
Share capital note under Schedule III: reconciliation, 5% holders and promoters' shareholding
Every item of the Division I share capital note, the 2021 promoters' shareholding table with ICAI's extra columns, a worked rights-issue example and the common slips.
Set Up Loan Ledgers So Current Maturities Aren't a March Scramble
One ledger per loan, EMIs split from the repayment schedule, interest accrued, CC and director loans, and a worked EMI loan split into current maturities at year-end.
Notes to accounts under Schedule III: the list of notes, their order and a format
The complete numbered list of notes for a small company's Division I accounts, the order convention, cross-referencing rules and an accounting policies skeleton.
Current and non-current classification under Schedule III: the tests, the operating cycle and examples
The four asset and four liability tests, the operating cycle, loans repayable on demand, covenant breaches, a 15-item classification table and a worked example.
Schedule III Division I, II and III: which one applies to your company
Which Schedule III Division a company uses, the Ind AS triggers that decide it, the presentation differences and what all three share.
Schedule III general instructions: rounding off, units, comparatives and notes
The six General Instructions of Division I paragraph by paragraph, the rounding table after G.S.R. 207(E), a note that will not cast after rounding, and the slips to check.
Tag MSME Suppliers in Tally Once and the 43B(h) Note Is Easy
Collect Udyam details once, tag suppliers in TallyPrime with the right credit days, and the face split, MSMED note, Form I and 43B(h) figure come from one register.
These 4 Documents Helped Save a CA: Prima Facie Guilty, Then Cleared by ICAI
Held prima facie guilty on three charges, then cleared on all three. What the documents did, what else the Committee relied on, and four lessons for every audit file.
Audit Fee ₹3,000, Fine ₹1 Lakh: ICAI Order on an Auditor Who Took Management's Figures at Face Value
A society audit billed at ₹3,000 a year ended, about ten years later, in a ₹1 lakh fine and 3 months' removal. What was missed, why the defence failed, and the basic checks that would have caught it.
Excel vs finalisation software: what really changes for a small CA firm
Where Excel is fine, where software saves time and control, what it will never do, and a checklist to decide for your firm.
Split These 8 Expense Ledgers Now or the Notes Need Rework
The eight expense ledgers a client should split in Tally from April, the Schedule III or legal provision behind each split, and the note it feeds.
Blamed It on Junior Staff: ICAI Order Rejects the Defence — ₹1 Lakh Fine and 3 Months' Removal
An auditor blamed junior staff and the client's deleted data. The Committee rejected both. What was found, why the defences failed, and a two-minute check before signing.
12 Entries Small Companies Forget Before Closing the Books
Twelve year-end adjustment entries, from outstanding expenses and the audit fee to gratuity, NRV and deferred tax, with the Dr/Cr, the basis and the auditor's tell for each.
8 trial balance red flags juniors miss and partners spot in seconds
Eight relationships in a trial balance that should change how you audit, with the client question and the SA or law behind each.
From Tally trial balance to draft Schedule III statements: a step-by-step workflow for small firms
Two trial balances, ledger mapping, the inputs a TB cannot give you, notes before the face, cash flow, ratios, tie-outs and the review.
Three versions of the trial balance later: how to see exactly what changed before you redo the accounts
A ledger-by-ledger method for checking a revised trial balance against your adjustments before you redo the draft accounts.
"Not applicable" isn't an answer: how to document what doesn't apply to a client
Every N.A. in the audit file is a conclusion — record the test, the figures, the year and the source in one line.
The 10-minute CY vs PY check that catches the obvious finalisation errors
A fast partner triage of draft accounts — ten comparisons in sequence, the threshold to use, and the client queries that follow.
9 Schedule III mistakes that show up in small company accounts
Nine presentation and disclosure slips common in small company accounts, with the Division I requirement and the fix for each.
The second review before signing: 15 questions an independent partner will ask
A cold second review for small firms: what SQC 1 and SA 220 require, and 15 questions on applicability, figures, judgements, reporting and paperwork.
A 30-Minute Month-End Close That Makes Year-End Audit Boring
A printable 30-minute month-end checklist for the client's accountant — what to tie in Tally each month, the statutory dates, and what each step saves at audit.
Trade receivables and payables ageing under Schedule III: the format, the buckets and the common slips
The Division I ageing tables row by row, what ICAI's Guidance Note adds, a worked example, building it from Tally, and the slips to check before signing.
Related party disclosures (AS 18): 8 items small company accounts often leave out
What AS 18 requires in the related party note, how it differs from the Companies Act definition, and eight items small company accounts often leave out.
High Cash in Hand? What the Auditor Asks Before Signing
Why a large cash balance is a red flag, how to find negative cash in Tally, a worked cash count roll-back, the Income-tax cash limits and fixing a shortfall.
Negative cash, debit creditors, credit debtors: 7 ledger errors hiding in a Tally trial balance
Seven ledger-level errors that hide in a balanced Tally trial balance — how to spot each in the export, the fix, and the Schedule III consequence.
6 CARO 2020 clauses that are easy to answer wrong — and how to get them right
Six CARO 2020 clauses where small-company reports often slip, with the evidence to keep and the reporting format for each.
Balance sheet doesn't tally after mapping? 6 places the difference usually hides
Six places a balance sheet difference hides after mapping a trial balance to Schedule III, and how to find it fast.
MSME dues and section 43B(h): the disclosure and disallowance small-company accounts often get wrong
What the MSMED Act, Schedule III and section 43B(h) require for dues to micro and small suppliers, the year-end traps, and a checklist for the payables file.
Set Up GST Ledgers in Tally This Way and Audit Gets Easier
The GST ledger structure that makes GSTR-2B matching, the year-end reconciliation, Schedule III presentation and the audit easy — with monthly and year-end formats.
Your audit report may be missing one of these 6 Rule 11 lines — including the 11(g) audit trail
Each current Rule 11 clause, when it applies, what to write, the audit trail points for small companies, and how to document it.
Peer review is coming: 12 things to have in a company audit file before the reviewer asks
What a peer review checks, a twelve-item file list with the standard behind each, common gaps and the firm-level records.
Schedule III of the Companies Act (Division I): the complete guide — format, notes and examples for FY 2025-26
The complete Division I format — balance sheet, profit and loss, general instructions, 2021 amendments — and every Schedule III guide in one place.
Consolidated financial statements under AS 21: when a company must consolidate, the method and a worked example
Section 129(3) and the Rule 6 exemption, control under AS 21, the method step by step, a worked example and the audit points.
Don't sign that balance sheet until you've checked these 7 things
The seven checks that catch the errors hardest to explain after signing — with the standard or law behind each.
50 finalisations, 3 juniors, one partner: how to run audit season without missing a deadline
The deadlines that bind, triage by deadline and risk, a stage board, partner review windows and the capacity arithmetic for a small firm's audit season.
Combined accounts for a proprietor, HUF or firm with several businesses or branches: what to remove and how
Why one person means one set of accounts, combining vs consolidating, what to remove, clearing differences, GST on branch transfers, and an example.
Schedule III ratios: the eleven ratios, their formulas and explaining a change of more than 25%
What Schedule III requires, a common basis for each ratio, the 25% test with examples, better explanations and the auditor's checks.
How to export a trial balance from Tally for audit: the settings, the steps and five checks
The settings that matter, the TallyPrime and ERP 9 steps, why not CSV or PDF, closing stock, and five checks before you use the file.
Materiality for small audits (SA 320 and SA 450): benchmarks, percentages and a worked example
The three figures, choosing a benchmark, owner-managed entities and partnership firms, a worked example, and what to document.
Audit programme for small audits (SA 300 and SA 330): structure, tailoring and a sample by area
Strategy vs plan, a usable structure, tailoring in three moves, the procedures always required, and a sample by area.
Year-end audit query list (PBC list) for finalisation: what to ask the client, by area
How to build the list, the requests by area, turning review findings into queries, confirmations under SA 505, and closing queries before sign-off.
Audit letters for CA firms: engagement, previous auditor, consent, confirmation and representation letters
The six letters in an audit file, when each is needed, what each must contain, and the points that are easy to get wrong.
Audit working papers (SA 230): what to record, permanent and current files, and retention
The SA 230 test, permanent vs current file, the parts of a good working paper, lead schedules, assembly and retention.
Company audit finalisation checklist for FY 2025-26: from trial balance to signed accounts
Eleven stages from engagement to archiving, each with the standard behind it — plus a note on where the tax audit sits.
Analytical review for finalisation (SA 520): a practical CY vs PY checklist with ratios
What SA 520 requires, an eight-step CY vs PY routine, the ratios worth computing from a TB, and how to document it.
CARO 2020 applicability: which companies are exempt — a decision table for FY 2025-26
The five exemptions, the two separate routes for private companies, how ICAI reads the borrowing and revenue tests — and a six-step decision table.
Small company limits raised to ₹10 crore and ₹100 crore: what changes for FY 2025-26 audits
Both limits, the exclusions, which year's turnover counts, and the effect on CARO, cash flow and IFC reporting — with four worked examples.