From a trial balance

Trial balance to Schedule III format in Excel

Schedule III of the Companies Act, 2013 sets the layout of an Indian company's balance sheet and statement of profit and loss. To get there from a trial balance, map each ledger to a Schedule III line, add the ledgers up line by line, carry the year's profit into reserves and surplus, and check that total assets equal total equity and liabilities.

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Every figure shown here is invented for illustration. Nothing on this page is computed from anyone’s accounts.

A Pune trading company's trial balance, set out under Schedule III

An invented trading company's trial balance at 31 March 2026:

Ledger	Debit (₹)	Credit (₹)
Furniture and equipment, net	18,40,000
Closing stock	32,60,000
Sundry debtors	41,20,000
Bank accounts	9,80,000
Advances to suppliers	2,40,000
Purchases	2,86,40,000
Salaries and wages	38,60,000
Rent and other expenses	21,30,000
Depreciation	3,10,000
Interest on term loan	1,90,000
Share capital		10,00,000
Reserves and surplus, opening		7,00,000
Term loan		12,00,000
Sundry creditors		36,50,000
GST and TDS payable		4,10,000
Sales		3,82,40,000
Increase in stock, from 28,90,000 to 32,60,000		3,70,000
Total	4,55,70,000	4,55,70,000

The statement of profit and loss:

Statement of profit and loss, year ended 31 March 2026	₹
Revenue from operations	3,82,40,000
Total income	3,82,40,000
Purchases of stock-in-trade	2,86,40,000
Changes in inventories of finished goods, work-in-progress and stock-in-trade	(3,70,000)
Employee benefits expense	38,60,000
Finance costs	1,90,000
Depreciation and amortisation expense	3,10,000
Other expenses	21,30,000
Total expenses	3,47,60,000
Profit before tax	34,80,000

And the balance sheet:

Balance sheet as at 31 March 2026	₹
Share capital	10,00,000
Reserves and surplus, with the profit for the year	41,80,000
Long-term borrowings	12,00,000
Trade payables	36,50,000
Other current liabilities	4,10,000
Total equity and liabilities	1,04,40,000
Property, plant and equipment	18,40,000
Inventories	32,60,000
Trade receivables	41,20,000
Cash and cash equivalents	9,80,000
Short-term loans and advances	2,40,000
Total assets	1,04,40,000

Reserves and surplus are the opening ₹7,00,000 plus the year's profit of ₹34,80,000.

Three steps from a trial balance to Schedule III

Map every ledger to a Schedule III line. Sundry debtors to trade receivables, sundry creditors to trade payables, duties and taxes to other current liabilities, purchases to purchases of stock-in-trade (or cost of materials consumed, for a manufacturer).
Add up each line and carry the profit into reserves and surplus. The year's profit from the statement of profit and loss joins the opening reserves.
Check both statements. Total assets must equal total equity and liabilities, and the profit in reserves must be the profit on the statement of profit and loss.

Current or non-current depends on when it falls due, not on the ledger's group

A term loan repaid in instalments belongs partly in each: what falls due within twelve months of the balance sheet date is current, the rest non-current. The same goes for deposits and advances. A trial balance holds one balance for the ledger, so the split is a judgement made at each year end, with the repayment schedule beside it.

What Schedule III asks for that a trial balance does not give

Since its 2021 amendment, Schedule III also asks for:

trade payables split between dues to micro and small enterprises and dues to others;
ageing schedules for trade receivables and trade payables;
a set of ratios, among them the current ratio, debt-equity ratio and return on capital employed.

The ageing and the split need supplier and customer detail that a trial balance does not carry: they come from the ledgers and the vendor master.

Magic MIS adds the Schedule III statements to every month's workbook

A company whose books are in rupees starts with the Schedule III layout, and any company can choose it. Upload the trial balance from Tally or any other system, in Excel, CSV or a text PDF; Tally's groups place most ledgers without a question, and each ledger is placed once and remembered. The workbook then holds the balance sheet and statement of profit and loss in the Schedule III layout every month, with the profit carried into reserves and surplus, any ledger not yet placed on a line of its own, and both checked before delivery. They are management statements in the Schedule III layout, not the financial statements a company files: the notes, the disclosures and the audit stay with the accountant. Prepaid credits, no subscription, and every action shows its price before it runs: see the credit packs.

What people ask about Schedule III from a trial balance

What is Schedule III?

The schedule to the Companies Act, 2013 that sets the format of a company's balance sheet and statement of profit and loss. Division I is for companies following the Accounting Standards, Division II for those following Ind AS.

Does Schedule III apply to a proprietorship or a partnership?

No, it applies to companies. Proprietorships and partnerships set out their accounts as suits them and their bankers, though many follow its layout.

Can I prepare Schedule III statements in Excel?

Yes: put a column beside the trial balance tagging each ledger with its Schedule III line, and total the lines with SUMIF. Keep the tags, because next month's trial balance needs them again.

Is the Schedule III balance sheet in the workbook the one we file?

No. It is a monthly management statement in the Schedule III layout. The financial statements a company files add the notes, the disclosures and the audit.

Have the Schedule III statements built from your trial balance

Create an account, load last month's trial balance, and get the report — paid per action.

Create an account See credit packs

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