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प्रश्न
Why is a Balance Sheet prepared?
उत्तर
The balance sheet was created for the following reasons:
- It displays a company's financial situation on a specific date for both owners and outsiders.
- It enables investors to understand the firm's earning capacity and financial health.
APPEARS IN
संबंधित प्रश्न
Explain five uses of Balance Sheet.
______ is a financial statement which sets out assets and liabilities as on a certain date.
Distinguish between a Profit and Loss Account and a Balance Sheet.
Mr. Tate's financial position on 1 December, 2018 was as follows:
Stock ₹ 4,460; Debtors ₹ 890; Creditors ₹ 2 400; Cash ₹ 500; and Fixed assets ₹ 3,000.
- Draw up a statement to show his assets, liabilities and capital on 1.12.2018.
- During the month of December, 2018, the following transactions took place; Sold goods for cash ₹ 4.000; sold the balance goods on credit for ₹ 3 000; received ₹ 2 000 from debtors; paid ₹ 900 to creditors; withdrew ₹ 400 for personal use; allowed and accounted a direct payment of ₹ 500 by a debtor to one of the creditors.
Draw up a statement of his financial position at the end of the month of December 2018.
The main use(s) of a Balance Sheet for a non-trading organisation is/are ______.
It is not an account but a statement.
All membership fees collected by a non-trading concern must be entered in the assets side of the balance sheet. Justify for or against.
"A trading account reveals the financial position of an organisation." Comment.
Balance sheet is an Account. Justify.
Receipts and payments account serves as the basis for preparing the balance sheet of non-trading organisation.
