Balance Sheet Format in Excel (Schedule III)
Last updated: 27 June 2026
A balance sheet is a snapshot of what your business owns, owes, and is worth on a specific date. For Indian companies, the Companies Act 2013 mandates the Schedule III vertical format — with Equity & Liabilities on one side and Assets on the other, both sides always summing to the same total.
Key takeaways
- Every Indian company must present its balance sheet in the Schedule III vertical format under the Companies Act 2013.
- The fundamental equation is: Assets = Equity + Liabilities — if your sheet does not balance, there is an error in your ledger or adjusting entries.
- Schedule III divides liabilities into Shareholders' Funds, Non-Current Liabilities, and Current Liabilities, and assets into Non-Current Assets and Current Assets.
- In Excel,
SUMIFformulas pulling from a chart of accounts make the balance sheet update automatically when ledger entries change. - Input GST credit appears as a current asset; output GST payable appears as a current liability — these are the two most commonly mis-posted GST items.
- MCA amended Schedule III on 24 March 2021, adding new disclosure requirements that companies must follow from financial year 2021-22 onwards.
- Sole proprietors and partnerships are not required to use Schedule III — a simpler capital-and-drawings format is acceptable for them.
What is a balance sheet and why must it balance?
A balance sheet reports three things at a single point in time — typically 31 March for Indian companies:
- Assets — what the business owns or is owed
- Liabilities — what the business owes to outsiders
- Equity — the owners' residual interest (assets minus liabilities)
The equation Assets = Liabilities + Equity is an accounting identity that always holds because every transaction touches at least two accounts equally. If your Excel sheet does not balance, you have a posting error, a missing entry, or a formula mistake.
Fact box. Under Section 128 of the Companies Act 2013, every company must retain its books of account, vouchers, and financial statements for a minimum of 8 years from the end of the relevant financial year. Sole proprietors and partnerships have no statutory minimum under the Companies Act, but 6–7 years is standard practice given income-tax assessment windows.
Which balance sheet format applies to your business?
| Business type | Mandatory format | Authority |
|---|---|---|
| Private limited company | Schedule III vertical format | Companies Act 2013 |
| Public limited company | Schedule III vertical format | Companies Act 2013 |
| One Person Company (OPC) | Schedule III vertical format | Companies Act 2013 |
| LLP | Schedule III (modified) | LLP Act 2008 / MCA guidance |
| Partnership firm | No statutory format | Income Tax Act (ITR-5 layout common) |
| Sole proprietorship | No statutory format | Income Tax Act (ITR-3/ITR-4 layout common) |
Statutory audit is compulsory for all companies regardless of turnover. Partnerships and sole proprietors face audit only when turnover crosses Section 44AB thresholds.
What does the Schedule III vertical format look like?
Schedule III splits the balance sheet into two halves presented vertically — Equity and Liabilities first, Assets second, with both totals matching.
Equity and Liabilities side
| Major head | Sub-heads |
|---|---|
| 1. Shareholders' Funds | Share Capital; Reserves & Surplus |
| 2. Non-Current Liabilities | Long-term borrowings; Deferred tax liabilities (net); Other long-term liabilities; Long-term provisions |
| 3. Current Liabilities | Short-term borrowings; Trade payables (MSME / others); Other current liabilities (GST payable, TDS payable, salaries payable, advance from customers); Short-term provisions |
Assets side
| Major head | Sub-heads |
|---|---|
| 1. Non-Current Assets | Fixed assets — Tangible assets; Fixed assets — Intangible assets; Capital work-in-progress (CWIP); Long-term investments; Deferred tax assets (net); Long-term loans & advances; Other non-current assets |
| 2. Current Assets | Inventories; Trade receivables; Cash & bank balances; Short-term loans & advances; Other current assets (Advance tax paid, Input GST credit, Prepaid expenses) |
GST note: input tax credit (ITC) not yet utilised sits under "Other current assets." Output GST owed to the government sits under "Other current liabilities." Never net the two off in the balance sheet.
Fact box. Schedule III is mandatory for all companies incorporated under the Companies Act 2013. The Ministry of Corporate Affairs (MCA) revised it via notification dated 24 March 2021, effective for financial years beginning on or after 1 April 2021. Key additions include disclosure of ageing of trade payables and receivables, title deeds of immovable properties, crypto/virtual digital asset holdings, and ratios such as debt-to-equity and return on equity.
How do you build a Schedule III balance sheet in Excel?
Use three worksheets: a Ledger sheet (account balances), a Trial Balance sheet (debit/credit totals), and the Balance Sheet sheet (SUMIF formulas mapped to Schedule III sub-heads).
Step-by-step setup
Set up the ledger sheet. Columns: Account Code, Account Name, Group (e.g., "Trade Payables"), Sub-group, Debit balance, Credit balance.
Map every account to a Schedule III group. All GST output accounts get Group = "Other Current Liabilities." Consistency here is critical — a mis-coded account ends up in the wrong sub-head.
Pull balances into the balance sheet with SUMIF. To pull all Trade Receivables:
=SUMIF(Ledger!$C:$C, "Trade Receivables", Ledger!$E:$E)Add a balance check cell.
=SUM(TotalAssets) - SUM(TotalEquityAndLiabilities)This must equal zero. Apply conditional formatting — red fill if non-zero, green if zero.
Protect the structure. Lock formula cells; leave only the ledger data-entry range editable.
Add a disclosures tab. From FY 2021-22, attach ageing schedules for trade receivables and payables, with MSME dues shown separately and bucketed by outstanding period (for example, under 1 year, 1–2 years, 2–3 years, and over 3 years).
Sole proprietor simplified format
For sole proprietors or partnerships, a simpler T-format is common:
| Liabilities | Amount | Assets | Amount |
|---|---|---|---|
| Capital account | ₹ | Fixed assets (net) | ₹ |
| Add: Net profit | ₹ | Stock-in-trade | ₹ |
| Less: Drawings | ₹ | Sundry debtors | ₹ |
| Sundry creditors | ₹ | Cash & bank | ₹ |
| Outstanding expenses | ₹ | Prepaid expenses | ₹ |
| Total | ₹ | Total | ₹ |
How Ankeshan helps
Ankeshan's accounting module maintains a chart of accounts pre-mapped to Schedule III sub-heads. Ledger entries flow straight into the balance sheet — no manual SUMIF wiring. The balance check runs in real time, and 2021 amendment disclosures (ageing schedules, key ratios) generate automatically at year-end.
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Frequently asked questions
Is Schedule III mandatory for sole proprietors and partnership firms? No. Schedule III applies only to companies incorporated under the Companies Act 2013 (and LLPs under MCA guidance). Sole proprietors and partnership firms follow no prescribed statutory format for their balance sheets, though they must maintain adequate books for income-tax purposes.
What is the difference between current and non-current assets? A current asset is expected to be converted to cash or consumed within 12 months of the balance sheet date (or the operating cycle, whichever is longer). Trade receivables due within 12 months are current; a 3-year fixed deposit is non-current.
Where does GST payable appear on the balance sheet? Output GST collected but not yet remitted appears under Other current liabilities. Input GST credit available for set-off appears under Other current assets. The two must never be netted — Schedule III requires them to be shown separately.
What happens if my balance sheet does not balance in Excel? Check: (a) a missing double-entry — every transaction needs both a debit and a credit; (b) an account mapped to the wrong group; (c) a SUMIF referencing the wrong column; (d) a year-end adjustment (depreciation, closing stock, tax provision) posted on one side only.
Where does advance tax appear on the balance sheet? Advance tax paid is a prepayment, not an expense — it sits under Other current assets as "Advance tax and TDS receivable." At year-end, offset it against the provision for income tax. If advance tax exceeds the provision, the net receivable stays in current assets; if the provision is higher, the net payable moves to current liabilities under "Short-term provisions."
Do I need to show comparative figures on the balance sheet? Yes. Schedule III requires companies to present figures for the current year and the immediately preceding year side by side. In Excel, add a second column for the prior year and populate it from the previous year's trial balance.
Sources and disclaimer
- Companies Act 2013, Schedule III (as amended by MCA notification dated 24 March 2021)
- Companies Act 2013, Section 128 (Maintenance of books of account)
- Ministry of Corporate Affairs, General Circular on Schedule III amendments
- Income Tax Act 1961, Section 44AB (Tax audit thresholds)
- GST Act 2017 (Input tax credit provisions, Sections 16–18)
Disclaimer. This article is for general educational purposes and does not constitute legal, tax, or accounting advice. Schedule III requirements and GST rules change frequently — always verify the current version of the statute or consult a qualified chartered accountant before preparing statutory financial statements.