Balance Sheet Example,What is The Horizontal and What is the Vertical Presentation Method Of Preparing A Balance Sheet
|Earlier article we have describe what is a balance sheet re:a Balance Sheet is called the Statement of Financial Position which is a snapshot of a company’s financial position at a particular point in time. The Accounting equation which is Assets= Liabilities+ Stockholder’s Equity is closely link to the Balance Sheet. Because of this accounting equation and the double entry system, the Balance sheet will always agree or tally.This article descibes the two ways/formats of preparing the balance sheet.
Balance sheet example using the horizontal presentation method:
Note that the horizontal presentation uses a format that present assets on the left and liabilities and equity on the right
Balance Sheet As at July 31st 2008
Balance sheet example using the Vertical presentation method:
The vertical presentation show the assets followed by liabilities and equity directly below the assets.
Balance Sheet As At 31st July 2008