Explain Balance Sheet
Describe briefly the term Balance Sheet? Why is Balance Sheet prepared?
Expert
Balance Sheet is a declaration showing financial situation of the business on a specific date. It has two side one source of funds that is, Liabilities, the left side of the balance sheet and application of funds that is, assets, the right side of the balance sheet. It is made after preparing trading and profit and loss account and has balances of personal and real accounts arranged and grouped in an appropriate way as assets and liabilities. It is made to know the accurate financial position of the business on the end date of the financial year.
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