Balance sheet is a summary of balances which showed Liabilities side as well as Asset side. I discovered a formulae at my Own level to make it meaningful & memorise the same for Mba’s/CA’s/CMA’s & also Under Graduates commerce level.

On liability Side :  S   R    Sen   Under    Control    OF      Police

On Asset  Side   :   Five  Indian  Cultivators   Looking   A   Melody

Each Alphabet first letter denotes the Heading of Balance sheet of both Assets & Liabilities which is mentioned below :

On Liabilities side :

S–Stands for—-Share  Capital–Equity Shares-Authorised,Subscribed,Issued & paid up, Preference shares will come under this Head.

R–Stands for—-Reserves & Surplus—General Reserves,P&L Cr. balance,Share premium,Capital Reserves etc will come under this Head.

Sen—Stands for ——–Secured Loans—-Loans against mortgage of Fixed Assets.

Under—  –Stands  for ————-Unsecured Loans—–6% debentures

Control—Stands for——Current Liabilities—Sundry Creditors,Bills payable,Outstanding Expenses etc.


Police ——Stands  for ——Provisions  for Taxations,Proposed Divident, Provision of Taxations etc.


On the Assets  Side :

Five—-F  stands for—-Fixed Assets—Land & Building,Plant & machineries,Car,Patents & copywrights,Furniture & fixtures,Goodwill etc

Indian—I  stands for—–Investments- Purchase of Nationals savings  certificate, Purchase of IDBI Bonds etc.

Cultivators—C stands for—-Current Assets———-Sundry Debtors,Bills Receivables,Inventory,Cash in hand, Cash at Bank etc

Looking  ——L  Stands for—Loans & Advances——Stafff Salary Advance, Advance Rent, Loans given to Outsiders etc.

A——stands for—-All Advances

Melody—M Stands for —-Miscellaneous Expenditure——Premilinary Expenditures. Discount on Issue of Shares,Advertising Suspense  etc.


See more  at :   http ://

Suggestions & feedback are most welcome.