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Elements of Balance Sheet 

1. Share Capital: It is the first item on the Liabilities side. It consists of the following items:a) Authorised Capitalb) Issued Capital: Equity share and preference share.c) Subscribed Capital less Call in Arrears add Forfeited Shares 

2. Reserve and Surplus: As per the Schedule VI, it consists of the following items:a) Capital Reserveb) Capital Redemption Reservec) Security Premiumd) Other Reserve less Debit balance of P & L A/ce) Surplus: Credit balance of P & L A/cf) Proposed Additionsg) Sinking Fund 

3. Secured Loansa) Debenturesb) Loan and advances from bank etc. 

4. Unsecured Loansa) Fixed Depositsb) Loan & Advances from subsidiaries 

5. Fixed Assets: These are those assets that are used for more than one year, like:a) Goodwillb) Landc) Buildingd) Plant & Machinerye) Patents, Trade Marksf) Livestockg) Vehicles, etc. 

6. Current Assets: Assets that can be easily converted into cash or cash equivalents are termed as current assets. These are required to run day to day business activities; for example, cash, debtors, stock, etc. 

7. Current Liabilities: Those liabilities that are incurred with an intention to be paid or are payable within a year; for example, bank overdraft creditors, bills payable, outstanding wages, short-term loans, etc are called current liabilities.
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