Schedule III Builder › Free formats
The new ICAI format
The NCE format for firms and proprietors.
ICAI's format for non-corporate entities, with partners' capital and current accounts, and the LLP format beside it. Download a complete sample as Excel or PDF.
Not Schedule III. The NCE format.
Schedule III of the Companies Act applies only to companies. Proprietorships, partnership firms, HUFs, trusts, societies and associations of persons follow the ICAI Guidance Note on Financial Statements of Non-Corporate Entities (NCEs), the new format for these accounts. LLPs are outside it and follow the ICAI Guidance Note on Financial Statements of LLPs. The layout is close to Schedule III, with owners' funds in place of shareholders' funds and the entity's own words in the notes.
Schedule III Builder prepares both from the trial balance, with every note, the partners' or proprietor's accounts and the previous year beside the current one.
The balance sheet, line by line.
| Particulars | Note | Current year | Previous year |
|---|---|---|---|
| I. Equity and liabilities | |||
| (1) Owners' funds | |||
| (a) Owners' capital account (partners', proprietor's or members') | ✓ | ||
| (b) Owners' current account | ✓ | ||
| (c) Reserves and surplus | ✓ | ||
| (2) Non-current liabilities | |||
| (a) Long-term borrowings | ✓ | ||
| (b) Deferred tax liabilities (net) | ✓ | ||
| (c) Other long-term liabilities | ✓ | ||
| (d) Long-term provisions | ✓ | ||
| (3) Current liabilities | |||
| (a) Short-term borrowings | ✓ | ||
| (b) Trade payables (micro and small enterprises, others) | ✓ | ||
| (c) Other current liabilities | ✓ | ||
| (d) Short-term provisions | ✓ | ||
| II. Assets | |||
| (1) Non-current assets: property, plant and equipment, intangible assets, capital work-in-progress, non-current investments, deferred tax assets, long-term loans and advances, other non-current assets | ✓ | ||
| (2) Current assets: current investments, inventories, trade receivables, cash and cash equivalents, short-term loans and advances, other current assets | ✓ |
What changes for each kind of entity.
| Entity | Owners' funds shown as | Profit goes to |
|---|---|---|
| Proprietorship | One proprietor's capital account, with drawings | The capital account |
| Partnership firm | Partners' capital account and partners' current account | The current account (or capital), by the partnership deed |
| LLP | Partners' contribution and partners' current account, with the contribution agreed in the LLP agreement | The current account |
| HUF | Karta's and members' capital | Capital |
| Trust, society | Corpus fund, general fund and earmarked funds | The general fund (excess of income over expenditure) |
The notes partners and banks ask for.
- Partner-wise capital and current accounts: opening, capital introduced, remuneration, interest on capital, share of profit, drawings and closing.
- Remuneration and interest to partners within the limits of section 40(b) of the Income-tax Act.
- Borrowings, trade payables with MSME dues, receivables, and property, plant and equipment.
- Contingent liabilities in the entity's own words: "claims against the firm not acknowledged as debt".
Partners' accounts that agree. Every time. Schedule III Builder fills each partner's account from the ledgers, shares the profit by the deed, and checks the closing balances against the balance sheet. For a proprietor it keeps one capital account, carried from year to year.
Questions.
What is the NCE format?
The format of financial statements in the ICAI Guidance Note on Financial Statements of Non-Corporate Entities (NCEs): proprietorships, partnership firms, HUFs, AOPs, trusts and societies. It is ICAI's new, uniform format for these accounts.
Does a partnership firm follow Schedule III?
No. Schedule III applies to companies. Firms, proprietors, HUFs, trusts, societies and AOPs use the NCE format of the ICAI Guidance Note on non-corporate entities, and LLPs the ICAI Guidance Note on LLPs.
Is the ICAI format compulsory for a proprietorship?
The Guidance Note is ICAI's recommended presentation, which auditors are expected to follow for the entities it covers. It sorts entities into levels by turnover and borrowings, with fewer disclosures for the smaller ones: check the level and the relaxations for each client in the Guidance Note.
Can I use the sample in my client's ITR?
The sample shows the layout. The balance sheet and profit and loss in the return come from the client's own figures; Schedule III Builder prepares ITR-5 for firms and LLPs and ITR-3 for proprietors and HUFs as JSON from the same books.