What if you could enter figures in a trial balance and have an Excel tool prepare a vertical-format Balance Sheet, Statement of Profit and Loss, and Notes to Accounts automatically? That is the process demonstrated in this guide. It follows the ICAI format for non-corporate entities and shows how the workbook maps trial balance figures into financial statements.
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When does the ICAI format apply?
ICAI has prescribed a phased implementation of its Guidance Note on Financial Statements of Non-Corporate Entities. For accounting periods beginning on or after 1 April 2025, it applies to entities with turnover exceeding ₹5 crore. For periods beginning on or after 1 April 2026, it applies to all non-corporate entities, regardless of turnover. That means the FY 2026–27 accounting period is covered across the board, including smaller proprietorships. icai.org
The practical change is broader than moving from a traditional horizontal or “T” presentation to a vertical one. The financial statements need to follow the prescribed structure, include Notes to Accounts, and show comparative figures for the previous year. Preparers should check the applicable requirements and any special format prescribed by the relevant law or regulator for their entity.
What the automation workbook prepares
The video demonstrates an Excel-based financial statement automation tool mapped to the ICAI format for non-corporate entities. It contains 10 sheets, including an instruction and checks sheet, the Trial Balance, the Balance Sheet, the Statement of Profit and Loss, and supporting notes.
The workbook is designed to take figures from the Trial Balance, route them to the relevant notes, and consolidate those note figures into the statements. The demonstration shows the flow; the user still needs to enter and review the underlying accounting figures.
Vertical Balance Sheet
The Balance Sheet displays the entity name and reporting date, with columns for the current year and previous year. It presents liabilities and assets in a vertical format instead of the traditional horizontal T-format.
Statement of Profit and Loss
The Statement of Profit and Loss also displays the entity name and reporting period, with current-year and previous-year figures. The workbook uses the notes to collect detailed figures and then brings the relevant totals into the statement.
Notes to Accounts
The Notes to Accounts provide the supporting detail behind figures presented in the Balance Sheet and Statement of Profit and Loss. In the demonstrated workbook, the notes are numbered and grouped: Notes 1–3 contain basic details, Notes 4–6 support Balance Sheet items, and Notes 7–10 contain further Balance Sheet notes. The workbook also includes Profit and Loss notes through Note 25.
The relevant figures are entered in the Trial Balance sheet. The workbook maps them to the appropriate notes, then consolidates the note totals into the statements. This structure helps present the statements and their supporting detail together.
How to use the workbook
1. Read the instructions and checks
Start with the instruction and checks sheet. The video points out that it explains how to use the workbook and provides a place to review checks.
2. Enter the entity name
Enter the non-corporate entity’s name in the Trial Balance sheet. In the demonstration, the name “ABC Enterprises” automatically appears in the Balance Sheet, Statement of Profit and Loss, and Notes to Accounts.
3. Enter the reporting dates
Enter the Balance Sheet date for the current year and the corresponding date for the previous year. The example uses 31 March 2027 for the current year and 31 March 2026 for the previous year. The workbook then displays the reporting periods and comparative columns in the statements.
4. Enter the Trial Balance figures
The Trial Balance is the workbook’s master input sheet. According to the walkthrough, figures should be entered there rather than directly into the Balance Sheet, Statement of Profit and Loss, or notes. The workbook then maps each figure to its relevant note and statement line.
If you already have a Trial Balance from a previous horizontal-format process, the video demonstrates using its figures as the input for the new vertical presentation. The previous-year Trial Balance figures can also populate the comparative figures, subject to the workbook’s mapping and review.
Examples from the walkthrough
Long-term bank loan
The video enters a ₹25 lakh long-term loan from a bank in the Trial Balance. The amount first appears in the relevant Balance Sheet note—shown in the walkthrough under the term loan section—and is then included in the Balance Sheet total for the corresponding liability.
The video also points out that the workbook’s reference column indicates where a figure should be reported. This helps the preparer trace the Trial Balance entry to the note and then to the final statement.
Advance received from a customer
The walkthrough next enters a ₹5 lakh advance from a customer. The amount is mapped to the relevant Balance Sheet note and presented as a liability. The reason given in the video is that the business may have to return or otherwise settle the advance.
These examples show the intended sequence: enter the figure in the Trial Balance, check that it appears in the appropriate note, and confirm that the note total flows into the Balance Sheet.
Revenue from services
For the Profit and Loss example, the video enters ₹15 lakh from the sale of services. The figure is mapped to the revenue-from-operations note, identified in the workbook walkthrough as Note 19, and then appears in the Statement of Profit and Loss.
The note captures the source of operating revenue, such as sales of goods or services. The walkthrough also mentions grants and other operating income as possible categories shown in the revenue note.
Review the output before finalising
Automation can save repetitive entry and help maintain a consistent presentation, but the preparer still needs to verify the result. Check that:
- Trial Balance figures have been entered in the correct rows and columns.
- Figures have mapped to the intended notes and statement lines.
- Current-year and previous-year dates and comparative figures are correct.
- Note totals agree with the amounts shown in the Balance Sheet and Statement of Profit and Loss.
- The financial statements include the disclosures required for the entity and its applicable accounting framework.
The video presents the workbook as a way to reduce manual preparation of the vertical-format statements and notes. It does not remove the need to review the accounting classification, disclosures, and final figures.
How to access the Excel resource
The workbook is shared through the CA Devesh Thakur WhatsApp Channel, along with other GST, income-tax and reconciliation resources.
Final takeaway
For accounting periods beginning on or after 1 April 2026, ICAI’s Guidance Note on Financial Statements of Non-Corporate Entities applies to all non-corporate entities under ICAI’s phased applicability announcement. The video’s Excel walkthrough shows how entering figures in a Trial Balance can populate a vertical-format Balance Sheet, Statement of Profit and Loss, Notes to Accounts, and comparative figures.
The main workflow is straightforward: enter the entity name, reporting dates, and Trial Balance figures; then review the mapped notes and statements before finalising them.
