Balance sheet vertical format. A company can make balance sheet according to the form given in part i of schedule vi of company law 1956. The example above shows a balance sheet in a horizontal format. Preparation of balance sheet of company is very necessary because indian company law 1956 gives strict instruction about the format of balance sheet of a company.
The balance sheet is one of the most important financial statements and is useful for doing accounting analysis and modeling. Assets are on the left side and liabilities and equity are on the right side. The report format is a vertical presentation of the numbers.
Balance sheet is the snapshot of a companys financial position at a given moment. I would like to suggest that it is better to give balance sheet format separately for sole trading concern and company. Prepare balance sheet template a balance sheet template is a blank format with header date categories and components of categories.
A balance sheet also known as the statement of financial position tells about the assets liabilities and equity of a business at a specific point of time. Preparation of balance sheet of company is very necessary because indian company law 1956 gives strict instruction about the format of balance sheet of a company. A balanced sheet shows total assets equal to total liabilitiesequity.
What is balance sheet. One can clearly see that the balance sheet shows the accounting equation or the financial position of a business except that this accounting equation is turned on its head and shown in a vertical format with the assets on top and the equity and liabilities on the bottom.