what is the use preparing balance sheet
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Answer / h.r. sreepada bhagi
The purpose of any business entity and its promoters is to
earn profit and ensure the growth of the organisation to
maximise profit & wealth over the years. To know the profit
earned or loss incurred & also the status of assets &
liabilities the books of accounts are closed at the year end
and Profit & Loss Account for the period & Balance Sheet at
the end of that year are prepared.
Balance Sheet shows the status of Assets, Liabilities &
Networth as at the end of any accounting period. From this
the promoters can decide whether the business is worth
continuing or not & can compare the growth year-on-year for
teh last few years.
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Answer / elamparithy.a
to know the financial position of the business
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Answer / kiran negi
balance sheet is a statement which tells the financial
position of a company. It is used to depict the financial
condition.
| Is This Answer Correct ? | 3 Yes | 0 No |
By preparing the balance sheet we can know the final
position of the particular organisation,firm or the
business in th balance we will record the total total
assets and liabilities .Throush the tally of the balance
sheet we can identify the finacial position of the
business. These are the uses of the balance sheet.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / m.d.shweatha
it is called balance sheet bcoz .it is a sheet of balance of
those ledger accounts which have not close till the
preparation of trading profit and loss account
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