What is the difference beteen new format and old format for balance sheet?
Answers
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.
See following image:
Due to limited information disclosure by the T shaped Balance Sheet and increasing information requirement; also to ensure comparability between financial statements, the Companies Act, 2013 has made a pro forma for Balance Sheet as per Schedule III Part B. It is applicable to companies with certain exceptions of Insurance, Banking and Electricity companies.
See illustrative image:
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