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Fixed assets

Schedule VI requires the company to classify the fixed assets as far as possible under the following heads:
a.    Goodwill
b.    Land
c.    Buildings
d.    Leaseholds
e.    Railway sidings
f.    Plant and machinery
g.    Furniture and fittings
h.    Development of property
i.    Planets, trade marks and designs
j.    Livestock
k.    Vehicles etc.

Under each of the above heads, original cost and the additions thereto or the deductions therefrom during the year and the total depreciation written off or provided upto the end of the year should be stated.

In the practical circumstances, in the vertical form of balance sheet, the fixed assets are presented as below:

a.    Gross block (which indicates accumulated original cost)
b.    Less: depreciation (which indicates accumulated depreciation)
c.    Net block (which indicates gross block less depreciation)
d.    Capital work-in progress.

Note: capital work-in-progress indicates the fixed assets under construction or under installation. After the construction of fixed assets is complete or the fixed assets are installed, they are capitalized under the suitable head. No depreciation will be provided by the company on capital work-in-progress.

Usually details of original cost, additions, deductions, depreciation etc. are shown in a separate schedule.

Investments indicate the assets held by a company for earning income by way of dividend, interest etc. or for capital appreciation or for other benefits to the investing company.
Investments are required to be distinguished as below:

a.    Investments in government or truest securities.
b.    Investments in shares, debentures or bonds showing separately shares fully paid up and partly paid up and also distinguishing different classes of shares. Similar details should be given in case of investment in subsidiary companies.
c.    Immovable properties
d.    Investment in capital of partnership firm.
e.    Balance of unutilized monies raised by issue.