Differences between old and new format of balance sheet
Answers
Answered by
1
The old format of balance sheet a.k.a. T shaped balance sheet has two sides. It shows all the liabilities including the owner's capital(liability for the business) on the left hand side while all the assets are shown on the right hand side. T shaped balance sheet is still applicable for Sole proprietorship form of business, partnership firms and any other enterprise other than a corporate body.
The new format of balance sheet is also called “vertical format balance sheet" this balance sheet is generally accepted under the companies act and almost every company use this format to prepare their balance sheet.
Similar questions