BALANCE SHEET
Question 1. What Is A Balance Sheet? Why Is It Prepared? Answer : Balance Sheet is a Statement showing financial position of the business on a particular date. It has two side one source of funds i.e Liabilities, the left side of the balance sheet and application of funds i.e assets, the right side of the balance sheet. It is prepared after preparing trading and profit and loss account and has balances of real and personal accounts grouped and arranged in a proper way as assets and liabilities. It is prepared to know the exact financial position of the business on the last date of the financial year. Question 2. List The Type Of Items Which Appear Under The Liability Side Of A Balance Sheet? Answer : Items which appear under the liability side of Balance Sheet are: Capital Long Term Liabilities Loan from bank Mortgage Current Liabilities Sundry Creditors Advance from Customers Outstanding Expenses Income Received in Advance Question 3. What Types Of Item...