Prepare vertical balance sheet for the following trail balance.

Finance ManagementAccountingAcademic Content


Dr. ($)Cr. ($)
Premises26000
Furniture14000
Vehicles7000
Inventory3000
Bank5300
Capital
45000
Loan from bank
8000
Trade receivables1500
Trades payables
2800
Net profit
10000
Drawings9000

6580065800

Solution

The solution is given below −

We know the equation => Assets = capital + liabilities

In vertical style, it is re written as −

Non-current assets + current assets = capital + non-current liabilities + current liabilities (Or)

Non- current assets + current assets – current liabilities = capital + non- current liabilities


$$
Balance sheet As on 31st March 2015
Non-current assets

Premises26000
Furniture14000
Vehicles7000


47000
Current assets

Inventory3000
Trades receivables1500
Bank5300

9800
Current liabilities

Trade payable(2800)7000
Net current asset
54000
Non- current liabilities

Loan from bank
(8000)


46000
Capital45000
Net profit10000
Drawings(9000)


46000
raja
Published on 13-Aug-2020 14:03:25
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