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Balance Sheet is called Balance Sheet because it is a sheet of those ledger accounts which have not been closed by transferring to Trading Account and Profit and Loss Account.

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Question

Balance Sheet is called Balance Sheet because it is a sheet of those ledger accounts which have not been closed by transferring to Trading Account and Profit and Loss Account.

Options

  • True

  • False

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Solution

True

Explanation:

The Balance Sheet lists assets, liabilities, and capital, with ledger accounts whose balances remain after closing entries (i.e., are not transferred to Trading or Profit & Loss accounts). Income and expense accounts are closed; remaining real and personal balances appear in the Balance Sheet.

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Chapter 7: Final Accounts of Sole Proprietorship - EXERCISES [Page 118]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 38. | Page 118
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