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प्रश्न
What are the advantages of preparing a balance sheet?
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उत्तर
- The main purpose of preparing a balance sheet is to ascertain the true financial position of the business at a particular point of time.
- It helps in comparing the cost of various assets of the business such as the amount of closing stock, amount due from debtors, amount of fictitious assets, etc.
Moreover, as assets and liabilities of similar nature are grouped and presented in the balance sheet, a comparative study of these assets and liabilities is facilitated. It helps in comparing the various liabilities of the business. - It helps in finding out the solvency position of the firm. The firm’s solvency position is favorable if the assets exceed the external liabilities. The firm’s solvency position is not favorable if the external liabilities exceed the assets.
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संबंधित प्रश्न
Answer in One Sentence:
What is Depreciation?
Give a word, term, or phrase which can substitute the following statement:
An additional information provided below the Trial Balance.
Select the most appropriate alternatives given below and rewrite the sentence :
____________ is excess of assets over liabilities
State True or False with reasons :
Every item of Trial Balance has only one effect.
Fill in the blank :
Income Receivable appears on __________ side of Balance Sheet.
Do you agree or disagree with the following statement:
Capital is excess of Liabilities over Assets.
Balance sheet shows the ______ of the business.
What are wasting assets?
From the following particulars, prepare balance sheet in the books of Bragathish as on 31st December, 2017:
| Particulars | ₹ | Particulars | ₹ |
| Capital | 80,000 | Cash in hand | 20,000 |
| Debtors | 12,800 | Net profit | 4,800 |
| Drawings | 8,800 | Plant | 43,200 |
Prepare trading and profit and loss account and balance sheet in the books of Deri, a trader, from the following balances as of March 31, 2018.
| Particulars | ₹ | Particulars | ₹ |
| Stock | 10,000 | Sales | 1,22,500 |
| Cash | 2,500 | Creditors | 5,000 |
| Bank | 5,000 | Bills payable | 2,000 |
| Freight inwards | 750 | Capital | 52,000 |
| Purchases | 95,000 | ||
| Drawings | 4,500 | ||
| Wages | 27,500 | ||
| Machinery | 50,000 | ||
| Debtors | 13,500 | ||
| Postage (office) | 150 | ||
| Sundry expenses | 850 | ||
| Rent paid | 2,500 | ||
| Furniture | 17,250 | ||
| 2,29,500 | 2,29,500 |
Closing stock (31st March, 2018) ₹ 8,000.
Following is the Receipts and Payments account of Neyveli Science Club for the year ended 31st December, 2018.
| Dr. | Receipts and Payments Account for the year ended 31st December, 2018 | Cr. | ||
| Receipts | ₹ | Payments | ₹ | ₹ |
| To Balance b/d | By Balance b/d | |||
| Cash in hand | 2,400 | Bank overdraft | 1,000 | |
| To Subscription | 8,700 | By Postage expenses | 200 | |
| To Life membership fees | 5,000 | By Science equipments purchased | 10,000 | |
| To Exhibition fund receipts | 7,000 | By Laboratory expenses | 2,400 | |
| To Sale of science equipments (Book value ₹ 5,000) | 6,000 | By Secretary’s honorarium | 5,000 | |
| To Miscellaneous income | 500 | By Audit fees | 3,600 | |
| By General charges | 1,800 | |||
| By Exhibition expenses | 5,000 | |||
| By Balance c/d | ||||
| Cash in hand | 200 | |||
| Cash at bank | 400 | 600 | ||
| 29,600 | 29,600 | |||
Additional information:
- Opening capital fund ₹ 6,400
- Subscription includes ₹ 600 for the year 2019
- Science equipment as on 1.1.2018 ₹ 5,000
- Surplus on account of exhibition should be kept in reserve for new auditorium.
Prepare income and expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.
From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31st March, 2018 and the balance sheet as on that date.
| Dr. | Receipts and Payments Account for the year ended 31st March, 2018 | Cr. | ||
| Receipts | ₹ | ₹ | Payments | ₹ |
| To balance b/d | By Rent and rates | 18,000 | ||
| Cash in hand | 10,000 | By Electricity charges | 17,000 | |
| Cash at bank | 20,000 | 30,000 | By Furniture purchased | 12,000 |
| To Subscription | By Billiards table purchased | 70,000 | ||
| 2016 – 2017 | 5,000 | By Repairs and renewals | 16,000 | |
| 2017 – 2018 | 25,000 | By Special dinner expenses | 4,000 | |
| 2018 – 2019 | 6,000 | 36,000 | By Special dinner expenses | 2,000 |
| To Legacies | 40,000 | By Balance c/d | ||
| To Rent from hall | 14,000 | Cash in hand | 1,000 | |
| To Lockers rent | 5,000 | |||
| To Collection for special dinner | 12,000 | |||
| To Balance c/d | ||||
| Bank overdraft | 3,000 | |||
| 1,40,000 | 1,40,000 | |||
Additional information:
- The club had 300 members each paying ₹ 100 as annual subscription.
- The club had furniture ₹ 10,000 on 1.4.2017.
- The subscription still due but not received for the year 2016 – 2017 is ₹ 1,000.
What is a balance sheet?
Annual Insurance Premium ₹ 8,000 is paid on 1st Dec 2018. Calculate the amount of Insurance Premium for the accounting year ending on 31st March 2019.
Calculate the Gross Profit/Gross Loss
Purchases A/c ₹ 15,500, Sales A/c ₹ 30,000, Carriage Inward ₹ 1,200, Opening Stock ₹ 5,000, Purchases Returns ₹ 500, Closing Stock ₹ 18,000
Which type of accounts appear on a balance sheet?
Which adjustment will affect both the Trading/Profit & Loss account and Balance Sheet?
