the balance sheet. Balance sheet of ... as on... Liabilities Assets Capital Add: Net profit/ Less: Net loss Less: Drawings Fixed assets: i) Intangible assets Goodwill Patent rights Reserves Long term loans Current liabilities: Bank overdraft, Cash credit Outstanding expenses Unearned income Short term loans from banks Sundry creditors Bills payable Provisions Provision for employee benefits Provision for tax Copy rights Trade marks Computer software ii) Tangible assets Land Buildings Less: Depreciation Plant and machinery Less: Depreciation Vehicles Less: Depreciation Furniture and Fittings Less: Depreciation Investments Current assets Stock Advances given Sundry debtors Bills receivable Prepaid expenses Accrued income Cash at bank Cash in hand Fictitious assets Preliminary expenses Accountancy - b) Vertical form of balance sheet The balance sheet of a sole proprietor can be presented in a vertical statement form as given below: Balance sheet of ...
as on... Current assets: Stock in trade Sundry debtors Marketable securities Prepaid expenses Accrued income Bills receivable Advances given Cash at bank Cash in hand Total Current assets Less: Current liabilities: Sundry creditors Bills payable Bank overdraft Short term loans Outstanding expenses Total current liabilities Net working capital Add: Long term investments Add: Fixed Assets: Goodwill Land and building Plant and machinery Furniture Total fixed assets Capital Employed (both owner’s funds and outsiders’ funds) Less: Long term liabilities: Loans Total long term liabilities Net Assets Represented by : Owners’ Capital Reserves and surplus Proprietor’s fund Accountancy - . . Preparation of Balance Sheet There is no prescribed format for preparing the balance sheet of sole proprietor and partnership.
For Joint Stock Company, the format of preparing balance sheet is given under Schedule III of Indian Companies Act, . After transferring all nominal accounts, the items left out in trial balance are real account and personal accounts. These are grouped under assets (debit balance) and liabilities (credit balance) and presented in a balance sheet. .
. Classification of assets and liabilities The resources acquired by the business entity out of funds provided by owners or creditors are called assets. These are the