Question

State any two uses of Balance Sheet. 

What are the uses of Balance Sheet.

Explain any three uses of Balance Sheet.

Answer 1

The main uses of a Balance Sheet for a non-trading organisation are as follows:

1. Balance Sheet shows the assets owned by a non-trading organisation.
2. It reveals the liabilities of the organisation. 
3. It depicts the Capital Fund of the organisation.
4. It shows the financial position of the organisation.
5. It fulfils the statutory requirements as a non-trading organisation is legally required to prepare a Balance Sheet.