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Balance Sheet

A Balance Sheet is a statement which is prepared for the purpose of finding out the Assets and liability position of the concern for the particular period. A Balance Sheet is also described as “Statement showing the sources and application of funds.” It is a statement and not an account and prepared from real and personal Accounts. It has two sides. The left side of the balance sheet describes the Liabilities and Capital position. The right hand side of the balance sheet describes all the assets and investments.

Trading, Profit & Loss Account disclose the financial results of the concern at the end of the year. But the Balance Sheet discloses the Assets and Liability Position of the Concern as on the date.

 

 Specimen form of Final Account Trading Account for the year ended …… 31.3.

Dr.                                                                                                                               Cr.

Profit and Loss Account for the year ended ……. 31.3

     Dr.                                                                                                                                       Cr.

Balance Sheet as on ……. 31.3

      Dr.                                                                                                                                        Cr.