The account form refers to a two-column format for the presentation of the balance sheet. In this format, assets are listed in the first column, while liabilities and equity accounts are listed in the second column. This layout matches the accounting equation, where the asset total equals the total of all liabilities and equity.

The account form balance sheet is presented in a horizontal format, with information in two columns beside each other. The left column of the account form balance sheet lists assets, while the right column lists liabilities and equity.

The account format is kind of a visual representation of the accounting equation. The assets are listed on the left alone. The liabilities and owner’s equity are added together and listed on the right. Both the left and right sides are totaled at the bottom of the report and must always equal each other.