• Generally every body have a confusion why the balance sheet of a company(vertical forum ) vary from that of a non company balance sheet
• The answer to this is that in the presentation of company balance sheet(vertical forum ) the following principle is followed
CAPITAL EMPLOYED IS EQUAL TO THE SUM OF
i. FIXED CAPITAL
ii. FINANCIAL CAPITAL
iii. WORKING CAPITAL
iv. FICTITIOUS ASSETS
Fixed capital refers to the amount of capital that is invested in fixed assets
And financial capital refers to amount of capital invested in acquiring investments
And working capital is the amount of capital is invested current assets
And fictitious assets Is not an capital asset and not acquired by employment of capital
For the kind attention of readers of this article capital employed is the sum of shareholders fund and loan fund
The specimen of company balance sheet is given below
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