Page 178 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes Balance sheet is presented in a Horizontal form
Balance Sheet of Mr. Faquir Chand
(as on 31st March, 2011)
Liabilities ( ) Assets ( )
Capital 24,000 Machinery at Cost 12,400
+Net Profit 67,900 Less depreciation
- Drawings 91,900 Furniture & Fixture 6,500
4,000 At cost less depreciation
87,900 Closing Stock 52,000
Bank overdraft
5,000 Sundry Debtors 63,000
Bills Payable
7,000 Bills Receivable 5,000
Sundry Creditors
40,000 Cash in hand 1,000
1,39,900 1,39,900

Vertical Presentation of Balance Sheet

Balance sheet may also be presented vertically or in a single column form. In this case fixed
assets are to be taken first + Amount of working capital i.e. Current Assets – Current liabilities,
to be contributed by the owner in the form of capital + net profit or- Net Loss.

If the above Balance sheet of Mr. Faquir Chand is presented in a single column (vertical form) it
would be like this:
Balance Sheet on Mr. Faquir Chand
(as on March 31st 2011)
Particulars ( ) ( )
Fixed Assets
Machinery 12,400
Furniture & Fixture 6,500
+Working Capital i.e. 18,900
Current Assets
Cash in hand 1,000
Bills Receivables 5,000
Sundry debtors 63,000
Closing Stock 52,000
Current Assets 1,21,000
(–) Current liabilities
Bank overdraft 5,000
Bills Payable 7,000
Sundry Creditors 40,000
52,000
Working Capital 69,000
Net Assets 87,900
Capital Contributed by the owner 24,000
+ Net Profit 67,900
Total Capital 91,900
– Drawings 4,000
Net Liabilities 87,900

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