Partnership account balance sheet format. The balance sheet is the financial statement that reports the assets liabilities and net worth of a company at a specific point in time. Article summary setting up your balance sheet preparing the assets section preparing the liabilities section calculating owners equity and totals community qa 14 references along with the income statement and the statement of cash flows the balance sheet is one of the main financial statements of a business. 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.
It shows a companys assets liabilities and equity accounts. There are two formats of presenting assets liabilities and owners equity in the balance sheet account format and report format. A company can also make balance sheet summary form but it has to attach its schedule in which explanation of different.
A company can make balance sheet according to the form given in part i of schedule vi of company law 1956. The report format the balance sheet is usually presented in one of two formats. Format of the balance sheet.
It may be noted that in this format bs format is given for company where are revenue ac is given for a single proprietor. 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. Assets represent the total resources of a company which may shrink or increase depending on the results of operations.
The company spent a total of 7400 in cash leaving a balance of 42600 50000 7400. The company now has two more assets on the company balance sheet. In canada the balance sheet format lists each group directly under the other in the order shown.
Preparing balance sheet from trial balance financial statement analysis commerce finance.