The balance sheet must conform to the regulations specified in the companies’ Act. Not that:
(1) Fixed assets should normally be shown either at cost or alternatively at some other valuation. In either case, the meth chosen should be clearly stated.
(2) The total depreciation from date of purchase to the date of the balance Sheet should be shown.
(3) The authorized share capital, when it is different from the issued share capital, is shown as a note.
(4) Reserves consists either of those unused profits remaining in the appropriation account, or transferred to a reserve account appropriately titled, for example general reserve, fixed assets replacement reserve etc.
At the juncture, all that needs to be said is that any account labeled as a reserve has originated by be in charged as a debit in the appropriation account and credited to a reserve account with an appropriation title. These reserves are shown in the balance sheet after share capital under the heading of ‘Reserves’. One reserve that is in fact not labeled with the word “reserve’ in its title is the share premium account. Note that shares can be issued for more than their face or Norminal value. The excess of the price at which they are issued over the Norminal value of the shares is credited to a share premium account. This is then shown with the other reserves in the balance sheet.
Where shares are only partly called up, then it is the amount actually called up that appears in the balance sheet and not the full amount.