How to Make Balance Sheet of Construction Company

If you have known to prepare balance sheet of company, there will not be any difficulty of making the balance sheet of construction company because all company has to following Company law's rules and regulations.


In India, Indian company law 1956 applies. As per this, there is clear form which has to follow the construction company for making his balance sheet. If you are new accountant in construction company, you need to understand specific terms which is important if you have to decided it asset or liability.

First of all, you should know, what is construction company. Construction company is the company which is in construction business. It constructs the highway, bridge, power plants, Oil Storage,  Airport construction Cooling Towers, Gas Pipeline, Dam, Water Treatment Complex, Bypass Road and other construction projects. For example, Hindustan Construction company and Soma construction company.

In construction company, we also show right side all the assets and left side all the liabilities.




We have taken the example of Hindustan construction company's 2014 balance sheet. Above side it has shown all the liabilities and below side, it has shown assets. On the regular basis of records of assets and liabilities balances have added in this balance sheet. Deferred tax (net) is shown in its non-current liabilities. It happens difference between the calculation of tax department and accountant of company. For more, you can learn Deferred tax assets and liabilities examples  from my past content. Same company has explained deferred tax (net) in detail in his note 6



If you read the HCC's annual report 2014, you will get many knowledgeable information which does not cover the balance sheet. For example HCC balance sheet has showing long term borrowing in its non-current liabilities. It has opened its detail in note 5. You know, HCC has made lots of bridge and highways in India. So, it needs money for his project which is not enough from equity capital. It has obtained long term debt from standard chartered bank, Development bank of Singapore and Toronto Dominion bank.

In End Important memory Point 

If you are new, just check old construction companies financial statement on the net. If you are new, you can solve your difficulty of making balance sheet of construction company by thorough study of past balance sheet and explaining notes. 

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Accounting Education: How to Make Balance Sheet of Construction Company
How to Make Balance Sheet of Construction Company
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