Balance Sheet is an important part of financial statements that indicates the financial position of an entity at any given point of time. Company balance sheet format gives detailed information of it that can be used to know the financial stability and position of such an entity. The balance sheet constitutes the reported version of the accounting equation i.e., where assets equate with liabilities plus equities. Investors and creditors normally take help from the balance sheet before investing in an entity.
Balance sheet analysis can disclose a lot of information about an entity’s position just like nykaa balance sheet. Importance of balance sheet is listed down below:
Balance sheet analysis can disclose a lot of information about an entity's position. Importance of balance sheet is listed down below:
As per the Companies Act 2013, every company is required to make their balance sheet in Vertical format which has Equities, liabilities above and assets in the bottom. Here is the new format of the balance sheet which includes balance sheet heading, new balance sheet format which is horizontal balance sheet format.
Non companies can follow the old T shape format of Balance sheet which is balance sheet format in India as well.
|Current Assets||Cash||Cash is a part of the current asset and is the most liquid form of these assets.|
|Accounts Receivable||Accounts receivable are the amount that needs to be received from the debtors.|
|Inventory||Inventory is the items of an entity which is either purchased or manufactured.|
|Cash Equivalent||These are the items which are not cash but have the same features as of cash.|
|Fixed Assets||Equipment||Items that are used for handling production or manufacturing work for the long term purpose.|
|Vehicle||Any vehicle owned by an entity.|
|Land||Land, a part or part thereof, owned by an entity in its own name for more than a year|
|Plant and machinery||Plants and machinery come under the heading of fixed assets as they can be utilized by an entity to carry out their production or manufacturing work for more than a year.|
|Intangible Assets||Goodwill||Goodwill comes under the heading of an intangible asset that shows future value of an entity.|
|Patent, copyright and trademark||These fall under the heading of intangible assets and are part of intellectual property rights which save an entity from any authorized use.|
|Current Liability||Accounts Payable||Accounts payable are such amounts that are not yet paid to creditors for services or goods.|
|Outstanding Expenses||Outstanding expenses are such amount that is due but not paid such as outstanding salary or wage.|
|Taxes Payable||Taxes payable are those amounts which are due and have to be paid to the government.|
|Long Term Liability||Long Term Debt||Long term debts indicate the total amount due which has to be paid by an entity for more than a year.|
|Equity||Capital||Capital represents the amount invested by the founder or the owner of an entity.|
|Retained Earning||Such amount which is earned and retained by the entity to be used in the business.|
|Reserves||Amount separated for specific or general purposes of the company.|