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Accountancy Presentation

Balance Sheet
Team 6:

Gaurav kumar
Nikhar agrawal
Saniya mirza
Abhishek kumar
Apoorva priyadarshi
Piyush pushkar

liabilities and shareholders' equity at a specific point in time. Batliboi: “A balance sheet is a statement prepared with a view to measure the exact financial position of a business on a certain fixed date. as well as the amount invested by the shareholders.” . Palmer: “The balance sheet is a statement at a particular date showing on one side the traders property and position and on the other hand the liabilities.R.” A. J. These three balance sheet segments give investors an idea as to what the company owns and owes.INTRODUCTION A Balance Sheet is a financial statement that summarizes a company's assets.

Debtors etc. e. Closing Stock.g.  To determine the nature and amount of various liabilities of the business.  .  To ascertain the nature and cost of various assets of the business.NEED AND IMPORTANCE To ascertain the true financial position of the business at a particular point of time.  To know the exact amount of capital at the end of the year and the additions or deductions made in the current year.

It is prepared at the end of the Financial Year. It is a summary of Personal and Real Accounts. It shows the financial position of the business according to the “Going Concern Concept”. Debit balances of these accounts are put on the right side–’Assets’ whereas the Credit balances are put on the left side-‘Liabilities’. The totals balances of Assets and Liabilities should be equal.CHARACTERSTICS      A Balance Sheet is a part of the Final Accounts and is prepared after the Trading and Profit and Loss A/c. .

. B/R.CLASSSIFICATION OF ASSETS  Fixed Assets . motor vehicle. etc.  Current Assets -those assets which are either in form of cash or can be easily converted into cash within one year of the date of balance sheet such as cash. closing stock etc. debtor. plant & machinery. short term investments.those assets which are acquired for continuous use and not intended for sale such as land & building. furniture.

. Cash etc. Stock. Liquid Assets.  Intangible assets are Those assets which do not have physical existence or which cannot be seen or felt such as Goodwill. Accrued Income etc. Building.Those assets which are either in form of cash or can be quickly converted into cash. B/R. such as Cash. Patents etc. Trademark. Debtors. Furniture.Those assets which have a physical existence like Plant and Machinery.  Tangible Assets.

 Current Liabilities.Those liabilities which are to be repaid after one year or more such as Public deposits. Outstanding Expenses etc. Debentures etc.CLASSIFICATION OF LIABILITIES  Fixed Liabilities. B/P. Long-term loans. .Those liabilities which are expected to be paid within one year of the date of the Balance Sheet such as Bank OD. Creditors.

Most easily convertible assets written first such as cash in hand and follow those assets which are comparatively less easily convertible. In the Order of Liquidity . the proprietor’s capital.Arrangements of Assets & Liabilities 1. . then fixed or long term liabilities and lastly. Current liabilities are written first of all. .

the current liabilities.  Liabilities which are to be paid last will be written first such as proprietor’s capital.2. .In the Order of Permanence  Assets which are most difficult to be converted into cash such as Goodwill are written first and the assets which are most liquids such as cash in hand are written last. then fixed or long term liabilities and lastly.



 Credit side items.  Items of Trial Balance should be shown once and outside Trial balance Adjustments have to be shown at two places.Dr.Points to remember:  Trial balance if not given. Side of Trading & P/L or Liabilities side of Balance Sheet. side of Trading & P/L or Assets side of Balance Sheet.  Debit side items . . prepare it.Cr.  Personal and Real Account balances are always shown in the Balance Sheet.

. All balances related to Goods such as purchases. sales and expenses directly related to these are recorded in Trading Account.  All Indirect Expenses will be shown in P/L Account.  The total of both sides of the balance sheet will always be equal.

(for the year ending 31 st March.Trial Balance of Bharat Sons Ltd. 2008) .


000 .750 8.685 To Power and fuel 6.500 By Closing stock 62.665 26.750 To Gross profit c/d 2.57.525 To Wages 1.875 By Provision for Doubtful debts To Postage 21. 2008) To Opening stock To Purchases 812525 Add: Omitted purchases 6.PARTICULARS Trading & P/L Account of Bharat Sons Ltd.500 By Gross Profit b/d To Salaries 27.332. (for the year ending 31st March.625 To Net Profit 1.125 To Depreciation 3.330 2.000 By Loss by fire 7.250 1.250 To Irrecoverable Loss of stock 2.262.665 1.625 By Sales 1.000 AMOUNT PARTICULARS AMOUNTT 1.82.130 Less: 5% Provision 12.155 By Interest on Loan 500 To Bad Debts 2625 Add: Further Bad Debts 2500 5.57.425 13.332. To Trade Expenses 29.

330 2.Balance Sheet of Bharat Sons Ltd.000 1.075 .625 27.000 Less: Bad Debts 2.750 Less: PBD 12. (as on 31st March.630 Add: Omitted Purchases 6.740 Add: Net Profit 1. 5.58.630 Sundry Debtors 2.82.425 Outstanding Wages 10.51.750 1.000 Creditors Closing Stock Loan to Ram 2.000 Furniture Less: Drawings 22.500 Bills Payable 19.070 CURRENT ASSETS Insurance Co.260 Less: Depreciation 3.000 CURRENT LIABILITIES Cash in Hand 50.2008) LIABILITIES AMOUNT ASSETS AMOUNT CAPITAL FIXED ASSETS Opening balance 50.250 32.52.625 36.

or computers.  Assets are all the things the business owns.    The most common use of the balance sheet is to determine the liquidity of a business . such as property.  A balance sheet lays out the ending balances in a company's asset. for example any loans it has taken out. It shows you all the cash the business has received and what it has done with it. liability.SUMMARY  The balance sheet of a business gives you a picture of everything the business has. Liabilities are all the things the business has that belong to someone else. and equity accounts as of the date stated on the report. or cash in the bank.

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