Question

prepare a balance sheet data in the vertical look.

Answer 1

Solution

The following data shows balance sheet of Modern Textiles Ltd. In vertical look:

Modern Textiles Ltd.

Balance Sheet

31^st March 2018

Particulars	Amount ($)
Liabilities and Stockholders’ Equity
Current Liability:
Accounts Payables	2,70,000
Accrued Liability	10,000
Proposed Dividend	90,000
Total Current Liabilities	3,70,000
Long Term Liability:
Long term debt	2,00,000
Stockholders’ Equity:
Stockholders’ Equity	6,00,000
Retained earnings	7,40,000
Total Stockholders’ Equity	13,40,000
Total Liabilities and Stockholders’ Equity	19,10,000
Asset
Current Assets:
Marketable securities	30,000
Inventory	7,34,000
Accounts Receivable	285,000
Prepaid expenses	6,000
Cash and Bank	40,000
Total Current Assets	10,95,000
Long Term Assets :
Land & Buildings	5,00,000
Furniture	1,00,000
Plant & Machinery	2,15,000
Total Long Term Assets	8,15,000
Total Asset	19,10,000