Format of the balance sheet, Financial Accounting

Format of the Balance Sheet

It shows the financial position of the company as at the end of a given financial period. The standard requires that assets and liabilities should be classified between current and non-current portions.

Currently, the standard requires the first part of  the balance sheet to show the total assets (i.e. non-current assets + current assets) and the second part of the balance sheet to show equity and liabilities. Equity is the shareholders funds while liabilities are the total of non-current and current liabilities.

The format of the balance sheet is given as follows:

ABC LTD

BALANCE SHEET AS AT 31/12/

NON-CURRENT ASSETS

£

£

Property, plant and equipment

 

x

Goodwill

 

x

Other intangible assets

 

x

Investment Longterm

 

x

 

 

x

CURRENT ASSETS

 

 

Inventory

x

 

Accounts receivables and prepayments

x

 

Short-term investment

x

 

Cash at bank and in hand

x

x

TOTAL ASSETS

 

xx

EQUITY AND LIABILTIES

 

 

Preference share capital

 

x

Ordinary share capital

 

x

 

 

x

RESERVES

 

 

Share premium

x

 

Revaluation reserve

x

 

General reserve

x

x

Retained profits

 

x

Shareholders funds

 

x

 

 

 

NON-CURENT LIABILITIES

 

 

Loan stock/debentures

x

 

Redeemable preference shares

x

 

Deferred tax

x

 

Other long-term provisions

x

x

 

 

 

CURRENT LIABILITIES

 

 

Bank overdraft

x

 

Trade and other payables (accruals)

x

 

Current tax (tax payable)

x

 

Current portion of loan stock

x

 

Prepared dividends (and shares or preference shares)

x

x

TOTAL EQUITY AND LIABILITY

 

xx

Posted Date: 12/12/2012 12:05:47 AM | Location : United States







Related Discussions:- Format of the balance sheet, Assignment Help, Ask Question on Format of the balance sheet, Get Answer, Expert's Help, Format of the balance sheet Discussions

Write discussion on Format of the balance sheet
Your posts are moderated
Related Questions
Extent of Tests of Control -Every year AUDITOR should obtain sufficient evidence about whether company's internal control over financial reporting, including controls for all inter

1.discuss how the vat system works 2.list and explain the vat supply categories, provide examples in each category write as an essay of 500 words

PROTECTION AGAINST CLAIMS The trustees may protect themselves against claims after discharge in the following ways:   1. As regards liability for rent and other obligations und

What are the effects on current income and on future income, if a firm incorrectly capitalizes an expenditure that it should have expensed?   State your answer for both current inc

Q. What is Audit Sampling? Audit Sampling - Application of an AUDIT procedure to less than 100% of items within anaccount BALANCE or class of transactions for purpose of evalua

The comparative balance sheet of Portable Luggage Company at December 31, 2008 and 2007, is as follows An examination of the income statement and the accounting records revealed th

Q. Explain bonus or capitalisation issues? A rights issue is a approach of raising finance via the issue of shares to existing equity shareholders. Consecutively to make such a

in bank reconciliation statement what are the statement to be reconcile

Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 0.55*(8% - 1%)

Joe Shareholder owns 100 shares of Peach Company stock which is currently selling for $100 per share. Peach declares a 2-1 stock split. How much are Joe's shares worth after the st