Teodoro M.

Luansing College of Rosario

Forms of balance sheet

a. Report form- under this format, assets, liabilities and equity are presented in a vertical
manner.
*Under report form, ang pattern ng presentation of the assets, liabilities, and equity ay
dirediretso lang pababa.
b. Account form- under the account form, assets, liabilities and equity are presented in a
horizontal manner, somewhat similar to the basic accounting equation.
*Sa account form naman, ang pattern ng presentation ay parang sa accounting equation, may
dalawang column, nakahiwalay si assets, at magkasama naman ang liabilities at owners
equity.

Report form Account form

ASSETS ASSETS LIABILITIES
vertical

LIABILITIES EQUITY
EQUITY
horizontal

Example 3: Statement of financial position

ABC Co.’s post-closing trial balance on December 31, 20x1 shows the following account balances:
Accounts Dr. Cr.
Cash 20, 000
Accounts receivable 122, 000
Allowance for bad debts 30, 000
Notes receivable (Trade) 8, 000
Inventory 200, 000
Prepaid supplies 15, 000
Prepaid rent 25, 000
Prepaid insurance 10, 000
Land 1, 000, 000
Building 2, 000, 000
Accumulated depreciation- Bldg. 1, 600, 000
Equipment 800, 000
Accumulated depreciation-
Equipment 250, 000
Accounts payable 100, 000
Notes payable- short term loan 200, 000
Notes payable-long term loan (
Php50, 000 due within 1 yr. 1, 450, 000
Interest payable 65, 000
Salaries payable 105, 000

National Rd., Brgy. Namunga, Rosario, Batangas, 4225 Philippines

Tel. No.: 0917-187-2929/ 043 781 1483
Email: luansingcollege@yahoo.com
 Teodoro M. Luansing College of Rosario

Utilities payable 8, 000

Unearned income 35, 000
Owner's capital 357, 000
Totals 4, 200, 000 4, 200, 000

Requirement: prepare the statement of financial position.

Solutions:

Report form

ABC Co.
Statement of Financial Position
As of December 31, 20x1

ASSETS
Cash ₱20, 000
Accounts receivable 122, 000
Allowance for bad debts (30, 000)
Notes receivable (Trade) 8, 000
Inventory 200, 000
Prepaid supplies 15, 000
Prepaid rent 25, 000
Prepaid insurance 10, 000
Total current assets 370, 000

Land 1, 000, 000

Building 2, 000, 000
Accumulated depreciation- Bldg. (1, 600, 000)
Equipment 800, 000
Accumulated depreciation- Equipment (250, 000)
Total non-current assets 1, 950, 000
TOTAL ASSETS ₱2, 320, 000

LIABILITIES
Accounts payable 100, 000
Notes payable- short term loan 200, 000
Notes payable-long term loan 50, 000
Interest payable 65, 000
Salaries payable 105, 000

National Rd., Brgy. Namunga, Rosario, Batangas, 4225 Philippines

Tel. No.: 0917-187-2929/ 043 781 1483
Email: luansingcollege@yahoo.com
 Teodoro M. Luansing College of Rosario

Utilities payable 8, 000

Unearned income 35, 000
Total current liabilities 563, 000

Notes payable- long term loan 1, 400, 000

Total non-current liabilities 1, 400, 000
TOTAL LIABILITIES ₱1, 963, 000

EQUITY
Owner's Capital 357, 000

TOTAL LIABILITIES AND

EQUITY ₱2, 320, 000

Account form

ABC Co.
Statement of Financial Position
As of December 31, 20x1

ASSETS LIABILITIES
Cash ₱20, 000 Accounts payable ₱100, 000
Accounts receivable 122, 000 Notes payable- short term loan 200, 000
Allowance for bad debts (30, 000) Notes payable-long term loan 50, 000
Notes receivable (Trade) 8, 000 Interest payable 65, 000
Inventory 200, 000 Salaries payable 105, 000
Prepaid supplies 15, 000 Utilities payable 8, 000
Prepaid rent 25, 000 Unearned income 35, 000
Prepaid insurance 10, 000 Total current liabilities 563, 000
Total current assets 370, 000
Notes payable- long term loan 1, 400, 000
Land 1, 000, 000 Total non current liabilities 1, 400, 000
Building 2, 000, 000 TOTAL LIABILITIES ₱1, 963, 000
Accumulated depreciation- Bldg. (1, 600, 000)
Equipment 800, 000 EQUITY
Accumulated depreciation- Equipment (250, 000) Owner's Capital 357, 000
Total non-current assets 1, 950, 000
TOTAL LIABILITIES AND
TOTAL ASSETS ₱2, 320, 000 EQUITY ₱2, 320, 000

National Rd., Brgy. Namunga, Rosario, Batangas, 4225 Philippines

Tel. No.: 0917-187-2929/ 043 781 1483
Email: luansingcollege@yahoo.com
 Teodoro M. Luansing College of Rosario

*Sa pag prepare ng Statement of Financial Position, ang kelangan mo lang gawin ay kopahin ang
elements nito according to its rightful element. Ang kelangan nyong iaster ditto ay ang pag
distinguish kung alin jan ang current assets, noncurrent assets, current liabilities, noncurrent
liabilities at owner’s equity. After madistinguish, pag iaapply na natin ang accounting equation,
ASSETS=LIABILITIES+OWNWER’S EQUITY. Magkakasama lahat ng assets, at magkakasama
ang liabilities at owner’s equity. Take note, the ending balance of asset must be equal to the
combined ending balances of liabilities and owner’s equity. Kapag hindi nagbalance, ibig sabihin
may mali sa ginawa nyo. Statement of Financial Position is usually done after the the 14 column
worksheet.

*The standards do not prescribe a specific format for presenting financial statements. This is at
the discretion of the reporting entity, having in the mind the concept of comparability. However,
the more commonly used format in external reporting is the report form.

* Mas common na ginagamit na form of presentation ng Satement of Financial Position ang report
form para mas madali ang camparision between assets at liabilities and owner’s equity.

National Rd., Brgy. Namunga, Rosario, Batangas, 4225 Philippines

Tel. No.: 0917-187-2929/ 043 781 1483
Email: luansingcollege@yahoo.com