Present the above Balance Sheet in vertical form.
Understand the Problem
The question is asking to present the given balance sheet in vertical format, meaning that the assets and liabilities should be formatted in a way that lists each item vertically rather than horizontally.
Answer
The vertical balance sheet shows liabilities and assets labeled clearly with amounts aligned respectively.
Answer for screen readers
Balance Sheet of Abhijeet Ltd. as on 31st March 2021
Liabilities
-------------
Equity Shares 3,90,000
10% Preference Share Capital 2,00,000
9% Debenture 2,50,000
General Reserve 60,000
Capital Reserve 50,000
11% Bank Loan 1,00,000
Creditors 1,25,000
Bank Overdraft 1,35,000
Provision For Tax 1,40,000
Proposed Dividend 30,000
Profit And Loss A/C 1,40,000
Bills Payable 80,000
Total Liabilities 17,00,000
Assets
------------
Cash in Hand 15,000
Cash at Bank 90,000
Preliminary Expenses 20,000
Goodwill 1,00,000
Building 3,00,000
Investment (Long Term) 2,00,000
Furniture 2,50,000
Plant and Machinery 3,00,000
Debtors 1,50,000
Prepaid Expenses 50,000
Stock 2,00,000
Discount on Issue of Shares 25,000
Total Assets 17,00,000
Steps to Solve
- Prepare the Structure
Start by creating a title for the balance sheet. Use a simple title like "Balance Sheet of Abhijeet Ltd. as on 31st March 2021".
- List Liabilities
Begin listing the liabilities section vertically. Format it like this:
Liabilities
-------------
Equity Shares 3,90,000
10% Preference Share Capital 2,00,000
9% Debenture 2,50,000
General Reserve 60,000
Capital Reserve 50,000
11% Bank Loan 1,00,000
Creditors 1,25,000
Bank Overdraft 1,35,000
Provision For Tax 1,40,000
Proposed Dividend 30,000
Profit And Loss A/C 1,40,000
Bills Payable 80,000
Total Liabilities 17,00,000
- List Assets
Next, list the assets section below the liabilities. Format it similarly:
Assets
------------
Cash in Hand 15,000
Cash at Bank 90,000
Preliminary Expenses 20,000
Goodwill 1,00,000
Building 3,00,000
Investment (Long Term) 2,00,000
Furniture 2,50,000
Plant and Machinery 3,00,000
Debtors 1,50,000
Prepaid Expenses 50,000
Stock 2,00,000
Discount on Issue of Shares 25,000
Total Assets 17,00,000
- Finalize the Balance Sheet
Ensure that the total liabilities equal total assets. The final format should look like this:
Balance Sheet of Abhijeet Ltd. as on 31st March 2021
Liabilities
-------------
Equity Shares 3,90,000
10% Preference Share Capital 2,00,000
9% Debenture 2,50,000
General Reserve 60,000
Capital Reserve 50,000
11% Bank Loan 1,00,000
Creditors 1,25,000
Bank Overdraft 1,35,000
Provision For Tax 1,40,000
Proposed Dividend 30,000
Profit And Loss A/C 1,40,000
Bills Payable 80,000
Total Liabilities 17,00,000
Assets
------------
Cash in Hand 15,000
Cash at Bank 90,000
Preliminary Expenses 20,000
Goodwill 1,00,000
Building 3,00,000
Investment (Long Term) 2,00,000
Furniture 2,50,000
Plant and Machinery 3,00,000
Debtors 1,50,000
Prepaid Expenses 50,000
Stock 2,00,000
Discount on Issue of Shares 25,000
Total Assets 17,00,000
Balance Sheet of Abhijeet Ltd. as on 31st March 2021
Liabilities
-------------
Equity Shares 3,90,000
10% Preference Share Capital 2,00,000
9% Debenture 2,50,000
General Reserve 60,000
Capital Reserve 50,000
11% Bank Loan 1,00,000
Creditors 1,25,000
Bank Overdraft 1,35,000
Provision For Tax 1,40,000
Proposed Dividend 30,000
Profit And Loss A/C 1,40,000
Bills Payable 80,000
Total Liabilities 17,00,000
Assets
------------
Cash in Hand 15,000
Cash at Bank 90,000
Preliminary Expenses 20,000
Goodwill 1,00,000
Building 3,00,000
Investment (Long Term) 2,00,000
Furniture 2,50,000
Plant and Machinery 3,00,000
Debtors 1,50,000
Prepaid Expenses 50,000
Stock 2,00,000
Discount on Issue of Shares 25,000
Total Assets 17,00,000
More Information
This balance sheet reflects a company's financial position as of a specific date. It lists both liabilities (obligations) and assets (resources owned). The total for liabilities must equal the total for assets, maintaining the accounting principle of balancing the equation.
Tips
- Forgetting to include the "Total" at the end of both liabilities and assets sections.
- Misaligning amounts with the corresponding items.
- Not labeling sections clearly, which can create confusion.
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