Ans
– MEANING OF BALANCE SHEET
Balance Sheet is a statement which shows the position of
assets and liabilities of an enterprise on a particular date. This statement is
prepared after preparing the “Trading and Profit & Loss A/c”.
The
main features of a Balance Sheet are as follows:
(i) A Balance Sheet is not an account.
It has no debit side or credit side. It is a statement having two sides. The
left hand side is called ‘Liabilities’ side while right side is called ‘Assets’
side.
(ii) A Balance Sheet is prepared at a
particular point of time and not for a particular period.
(iii) A Balance Sheet is prepared from
the balances of ‘Real’ and ‘Personal’ accounts appearing in the trial balance.
‘Nominal Accounts’ do not appear in the balance sheet as they are already
closed by transferring to Trading and Profit & Loss A/c.
(iv) In a Balance Sheet, the total of
all assets must be equal to the total of all liabilities and capital i.e.
Assets = Liabilities + Capital or Capital = Assets – Liabilities
SPECIMEN:
Balance Sheet is
prepared in the following format:
(A)
In order of permanence:
BALANCE
SHEET OF M/s……..
As
on ………
Liability
|
Rs.
|
Assets
|
Rs.
|
CAPITAL:
Opening Balance ***
Add: Net Profit ***
(Less: Net Loss)
***
Less: Drawings ***
LONG
TERM LOANS:
Loans from banks
Loans from financial institutions
CURRENT
LIABILITIES:
Sundry Creditors
Outstanding Expenses
Bills Payable
Bank Overdraft
Income received in advance
Short term loans
|
***
***
***
***
***
***
***
***
***
***
|
FIXED
ASSETS:
Goodwill
Land
Building
Plant & Machinery
Furniture and Fixtures
INVESTMENTS:
CURRENT
ASSETS:
Closing Stock
Accrued Income
Prepaid Expenses
Sundry Debtors
Bills Receivable
Cash at Bank
Cash in Hand
|
***
***
***
***
***
***
***
***
***
***
***
***
***
***
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(B)
In order of liquidity:
BALANCE
SHEET OF M/s……..
As
on ………
|
Particulars
|
Rs.
|
Assets
|
Rs.
|
|
CURRENT
LIABILITIES:
Bank Overdraft
Bills Payable
Sundry Creditors
Outstanding Expenses
Income received in advance
Short term loans
LONG
TERM LOANS:
Loans from banks
Loans from financial institutions
CAPITAL:
Opening Balance ***
Add: Net Profit ***
(Less: Net Loss)
***
Less: Drawings ***
|
***
***
***
***
***
***
***
***
***
***
|
CURRENT
ASSETS:
Cash in Hand
Cash at Bank
Bills Receivable
Sundry Debtors
Prepaid Expenses
Accrued Income
Closing Stock
INVESTMENTS:
FIXED
ASSETS:
Furniture and Fixtures
Plant & Machinery
Building
Land
Goodwill
|
***
***
***
***
***
***
***
***
***
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