Vertical Presentation of Manufacturing Account FAQs
Manufacturing Accounts are often presented in a vertical format. This way of preparing Final Accounts is regarded as advantageous and is, therefore, in common use today.
The vertical presentation of accounts was first recommended by walker "as a convenient and fairly complete system of account, suitable for general adoption".
Some of the advantages are : a. It is, by far, the most convenient method for ascertaining the results of trading. B. It facilitates comparison with previous years' figures, owing to its uniformity. C. The vertical form is readily adapted for incorporation in a General Ledger system and may be considered as part of a complete set of subsidiary books. D. It provides a ready check on the accuracy of the departmental record. E. It is easy to prepare, needing little instruction or training in accounts for its preparation.
Vertical presentation of accounts may be used in all types of manufacturing concerns. Even retail traders, eg. Grocery shops use the vertical form in their Bookkeeping practice.
No, with the data contained in the schedules. All the details required for the presentation of accounts vertically are available in the Final Accounts schedule itself.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.