Question
State one point of difference between Statement of Affairs and Balance Sheet.
✓
Answer
Differnce between Balance Sheet and Statement of Affairs
|
S.No.
|
Basis
|
Balance Sheet
|
Statement of Affairs
|
|
1.
|
Objective
|
The main objective of preparing Balance Sheet is to know about the financial position of the business.
|
The main objective of preparing Statement of Affairs is to know about capital at a point of time.
|
|
2.
|
Accounting System
|
Balance Sheet is prepared when accounts are maintained under Double Entry System.
|
Statement of Affairs is prepared when accounts are maintained under Single Entry System.
|
|
3.
|
Accounts and Information
|
This is prepared exclusively on the basis of ledger accounts.
|
In view of incomplete accounts, its preparation is based on limited accounts, calculations, estimates and other information.
|
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
Calculate the amount of bills receivable dishonoured from the following information.
| ₹ | |
| Opening debtors. | 45,000 |
| Closing debtors. | 56,000 |
| Discount allowed. | 2,500 |
| Sales returns. | 8,500 |
| Irrecoverable amount. | 4,000 |
| Bills receivables received. | 12,000 |
| Bills receivable dishonoured. | 3,000 |
| Cheque dishonoured. | 7,700 |
| Cash sales. | 80,000 |
| Cash received from debtors. | 2,30,000 |
| Cheque received from debtors. | 25,000 |
Calculate the Stock at the end:
| ₹ | |
| Stock in the beginning | 20,000 |
| Cash Sales | 60,000 |
| Credit Sales | 40,000 |
| Purchases | 70,000 |
| Rate of Gross Profit on Cost | 1/3 |
Calculate Net Sales and G.P. from the following:
|
|
₹
|
|
Cost of Goods Sold
|
4,50,000
|
|
G.P.
|
25% on Sales
|
Explain how the following may be ascertained from incomplete records:
Credit sales and credit purchase.
Credit sales and credit purchase.
What is Binary System?
Calculate the value of Opening Stock from the following:
What is meant by Statement of Affairs?
Calculate cost of goods sold from the following:
| ₹ | ₹ | ||
| Opening Stock | 40,000 | Wages & Salaries | 10,000 |
| Net Purchases | 50,000 | Rent Paid | 15,000 |
| Net Sales | 1,90,000 | Closing Stock | 15,000 |
Calculate operating profit from the following:
|
|
₹
|
|
Net Profit
|
5,00,000
|
|
Dividend Received
|
6,000
|
|
Loss on sale of Furniture
|
12,000
|
|
Loss by Fire
|
50,000
|
|
Salaries
|
1,20,000
|
|
Interest on Loan from Bank
|
10,000
|
|
Rent Received
|
24,000
|
|
Donation
|
5,100
|