Sensational Types Of Balance Sheet Format

The balance sheet discloses financial position of the business.

Types of balance sheet format. In account format the balance sheet is divided into left and right sides like a T account. As the term balance sheet suggests it is a tabular sheet of balances of assets liabilities and equity. This horizontal format basically looked like one giant T-account for the whole business with Assets on one side and Liabilities and Owners Equity on the other.

Format of the balance sheet There are two formats of presenting assets liabilities and owners equity in the balance sheet account format and report format. Capital is the first item shown on the liability side of the balance sheet of an organization. The more common are the classified common size comparative and vertical balance sheets.

Also the balance sheet is often abbreviated as BS or BS. Cash Cash Equivalents. Assets are placed in the left hand side while the liabilities are placed on the right hand side.

The total of both side should always be equal. The other type of balance sheet is report form in which only one column is present which is specified for assets liabilities and equities. Items of Balance Sheet.

Now let us discuss some of the most common and major items in a balance sheet. Balance sheets show the assets and liabilities of a business at one particular date. Balance sheet format is categorized in two types.

Two basic forms of balance sheets are common the report type and the account type. Liabilities are generally further classified into current and long-term liabilities. Capital is a liability for the business as the business has to pay.