Question

Distinguish between a Company’s Balance Sheet and Firm’s Balance Sheet.

Answer 1

Basis of Distinction	Company’s Balance Sheet	Firm’s Balance Sheet
1. Format and Contents	Format and Contents of a Company’s Balance Sheet must be in accordance with Schedule III Part I of Company’s Act 2013.	There is no statutory format or prescribed contents for the Balance Sheet of a firm.
2. Figures of Previous Year	Figures of the previous year must also be given against each figure of current year.	Figures of the previous year are not required in the Balance Sheet of a firm.
3. Order of Permanence or Liquidity	Company’s Balance Sheet is prepared in order of permanence.	Firm’s Balance Sheet may be prepared in order of permanence or liquidity.
4. Vertical form or Horizontal form	Company’s Balance Sheet is prepared in Vertical form.	Firm’s Balance Sheet is generally prepared in horizontal form.