1. We know entries made in tally or any other accounting software, are included in financial statements. I want to know that- A) If an excel spreadsheet is used by a company to record inventories like for internal control, will it be considered as a part of financial statements (Total balance(unsold) inventory will be shown in the balance sheet, which is taken from the excel spreadsheet)

2) What benefit may arise to the company, if it intentionally Shows 1.3 million Usd worth building for 1 million ( undervaluation, note building was already owned years ago, here it is deliberately undervalued)

Now from screenshots-

3) I don't understand how expense(which is product of Income statement) shown in balance sheet, and how an expense can an asset, I know it can if we pay in advance to present the expense on asset side but if we pay in advance them cash will be reduced, and the balance sheet remains same.

4) How off balance sheet is illegal and fraud. according to example, neither it looks like fraud nor illegal. there is no play for expense and rental obligation in balance sheet, also how certain asset and liabilities can be excluded from balance sheet , where is auditor? and if we reduce asset and liability from both side of balance sheet, how it is going to do benefit

Delaying or accelerating a company's expenses Showing an expense as an asset on the balance sheet rather than writing it off immediately against profits is a quick way to improve your reported profits, as practised spectacularly by World Com before its collapse. This is contrary to acceptable accounting practices. PO Off-balance sheet accounting A balance sheet is supposed to include all the assets and liabilities of the organisation. Off-balance sheet accounting is the deliberate exclusion of certain assets and liabilities from the published balance sheet, meaning that shareholders are misled about the organisation's financial obligations. One example is a short-term lease. If you lease a building for, say, two years then under current accounting practices you do not have to show the asset or the related obligation to pay the rental amounts on the balance sheet. You have the use of the asset and you have a contractual obligation to pay the rentals, but neither the asset nor the liability are shown on your balance sheet