Prepare the format of balance sheet and | Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Chapter Financial Statements of a Company, Financial Statements of a Company NCERT Solutions

Question:

Prepare the format of balance sheet and explain the various elements of balance sheet.

Answer:

For a business, the balance sheet is one of the main financial reports prepared by either the bookkeeper or the accountant. Its a snapshot view of your
businesss overall financial situation for a particular period of time. The balancesheet consists of three major elements: assets, liabilities and owners equity. The object of the statement is to prove true the accounting equation, "

Asset = Liabilities + Owners Equity." The statement places a business

assets on the left side of the equation and the liabilities and equity on the right and the amounts on each side of the equation should be equal. Overall Use of the Balance Sheet Your balance sheets show the position of the company on a given day, including its total assets, liabilities and equity, which equals its net worth. Lenders commonly use financial statements to assess your companys creditworthiness. A high debt-to-assets or debt-to-equity ratio is a concern.

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How will you disclose the following items in the Balance Sheet of a company;
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Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Financial Statements of a Company.
Review previous year question papers to get an idea of how such questions may be framed in exams.
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Welcome to the NCERT Solutions for Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter . This page offers a step-by-step solution to the specific question from Excercise 2 , Question 5: Prepare the format of balance sheet and explain the various elements of balance sheet.....

Prepare the format of balance sheet and | Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Chapter Financial Statements of a Company, Financial Statements of a Company NCERT Solutions

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