Question

The form of Balance Sheet as per Companies Act, 2013 is:

• A. Horizontal
• B. Vertical
• C. Both (A) and (B)
• D. None of these

Hint:

From Companies Act 2013 onward, only vertical format is allowed for Balance Sheet presentation.

Answer 1

The Correct Option is B

Step 1: Companies Act, 2013 provisions.
As per Schedule III of Companies Act, 2013, the prescribed format of Balance Sheet is vertical.
Step 2: Explanation of vertical format.
The vertical format lists liabilities and assets in a top-to-bottom manner, starting with equity & liabilities and then showing assets.
Step 3: Eliminate wrong options.
- (A) Horizontal: This was the earlier format under old law, not applicable now.
- (C) Both: Wrong, only vertical is prescribed.
- (D) None: Wrong, as vertical is correct.
Step 4: Conclude.
Thus, the Balance Sheet as per Companies Act, 2013 is prepared in vertical form.
Final Answer: \[ \boxed{\text{Vertical}} \]