Question

Give a specimen of vertical form of Balance Sheet.

Hint:

The vertical format is easier to read and helps in comparing different categories of assets and liabilities.

Answer 1

Step 1: Definition of Balance Sheet.
A balance sheet is a financial statement that shows a company’s assets, liabilities, and equity as of a specific date.

Step 2: Vertical form of balance sheet.
In the vertical form of the balance sheet, the assets are listed at the top, followed by liabilities and then the equity. The total assets should equal the total liabilities plus equity.

Step 3: Specimen of vertical form of balance sheet.
 

\[ \begin{array}{|l|r|} \hline \textbf{Liabilities} & \textbf{Assets} \\ \hline \text{Share Capital} & \text{Fixed Assets} \\ \text{Reserves and Surplus} & \text{Current Assets} \\ \text{Long-term Borrowings} & \text{Cash and Bank} \\ \text{Current Liabilities} & \text{Inventory} \\ \hline \text{Total Liabilities} & \text{Total Assets} \\ \hline \end{array} \]

Step 4: Conclusion.
The vertical balance sheet provides a clear and simple presentation of the company's financial position.

Final Answer:
\[ \boxed{\text{The vertical balance sheet shows assets and liabilities in a columnar format.}} \]