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प्रश्न
"A trading account reveals the financial position of an organisation." Comment.
उत्तर
The statement "A trading account reveals the financial position of an organization" is incorrect.
A trading account mainly shows the results of purchasing and selling items, with a focus on the gross profit or loss from these transactions. It determines the gap between sales income and the cost of goods sold. However, it does not provide a complete overview of the organization's overall financial status, including assets, liabilities, and equity. The balance sheet reveals the entire financial status.
संबंधित प्रश्न
What are the features of a Balance Sheet?
Explain five uses of Balance Sheet.
It helps the investor to know the earning capacity and financial health of the firm.
______ is a financial statement which sets out assets and liabilities as on a certain date.
Why is a Balance Sheet prepared?
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 ______.
______ shows the financial position of the organization.
Receipts and payments account serves as the basis for preparing the balance sheet of non-trading organisation.
