Format Of Balance Sheet: The Horizontal And Vertical Presentation

A Balance Sheet is also called the Statement of Financial Position. It 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 must always tally.

Append below are two format namely the Horizontal and Vertical Presentation to display the Balance sheet of a company.

(a)Format of A Balance Sheet: Horizontal Presentation

The horizontal presentation uses a format that present assets on the left and liabilities and equity on the right

XYZ Company

Balance Sheet As at December 31st 2008

Assets		Liabilities & Stockholders’ Equity
	$		$
Current Assets		Current Liabilities
Cash	10,000	Accounts payable	15,000
Accounts Receivable	20,000	Salaries Payable	9,000
Inventories	30,000	Total Current Liabilities	24,000
Deposits, prepayments	5,000	Bonds payable	20,000
Total Current Assets	65,000	Mortgages	35,000
		Total Liabilities	79,000
		Stockholders’ equity
Property, plant and equipment, net	55,000	Common stock	50,000
Intangible assets	10,000	Retained earnings	1,000
Total Assets	130,000	Total Liabilities and Stockholders’ equity	130,000

(b) The Vertical Presentation of The Format Of A Balance Sheet

The vertical presentation show the assets followed by liabilities and equity directly below the assets.

XYZ Company

Balance Sheet As At 31 st December 2008

Assets
Current Assets
Cash	10,000
Accounts Receivable	20,000
Inventories	30,000
Deposits, prepayments	5,000
Total Current Assets	65,000
Non Current Assets
Property, plant and equipment, net	55,000
Intangible assets	10,000
Total Non Current Assets	65,000
Total Assets	130,000
Liabilities & Stockholders’ Equity
	$
Current Liabilities
Accounts payable	15,000
Salaries Payable	9,000
Total Current Liabilities	24,000
Non Current Liabilities
Long Term Bonds payable	20,000
Mortgages	35,000
Total Non Current Liabilities	55,000
Total Liabilities	79,000
Stockholders’ equity
Common stock	50,000
Retained earnings	1,000
Total Liabilities and Stockholders’ equity	130,000