Question
Why is Balance Sheet prepared?
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Answer
Balance Sheet is the statement prepared after preparing Trading and Profit and Loss Account. Balance Sheet is “a statement which sets out the assets and liabilities of a firm or an institution as at a certain date.”
In the words of Francis R. Stead. "A Balance Sheet is a screen picture of the financial position of a going business at a certain moment."
In the words of Francis R. Stead. "A Balance Sheet is a screen picture of the financial position of a going business at a certain moment."
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Similar questions
Ascertain Gross Profit from the following:
From the following particulars, ascertain the value of Opening Stock:
Prepare correct Trial Balance from the following Trial Balance in which there are certain mistakes:
[Hint: Since cost of goods sold is given, therefore, the opening stock will not be recorded in the Trial Balance and Closing Stock will appear on the debit side.]
[Hint: Since cost of goods sold is given, therefore, the opening stock will not be recorded in the Trial Balance and Closing Stock will appear on the debit side.]
Mrs. Anu started firm with a capital of ₹ 4,00,000 on 1st October, 2016. She borrowed from her friends a sum of ₹ 1,00,000 @ 10% per annum (interest paid) for business and brought a further amount to capital ₹ 75,000 on March 31, 2017, her position was:
He withdrew ₹ 8,000 per month for the year. Calculate profit or loss for the year and show your working clearly.
| ₹ | |
| Cash | 30,000 |
| Stock | 4,70,000 |
| Debtors | 3,50,000 |
| Creditors | 3,00,000 |
Write short note on the following:
Customised Accounting Software.
Customised Accounting Software.
How are computers useful in processing the accounting data?
From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of:
- Cost of goods available for sale.
- Cost of goods sold during the year.
- Gross Profit.
| ₹ | |
| Opening stock. | 25,000 |
| Credit purchases | 7,50,000 |
| Cash purchases | 3,00,000 |
| Credit sales | 12,00,000 |
| Cash sales | 4,00,000 |
| Wages | 1,00,000 |
| Salaries | 1,40,000 |
| Closing stock | 30,000 |
| Sales return | 50,000 |
| Purchases return | 10,000 |
Ram draws a bill for ₹ 2,000 on Shyam on 15th September, 2018 for 3 months. On maturity, Shyam failed to honour the bill.
Pass the necessary Journal entries in the books of Ram and Shyam.
Pass the necessary Journal entries in the books of Ram and Shyam.
What do you understand by Customised Software?
What types of Softwares are available for Accounting purpose?