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What do you mean by prepration of Balance sheet? how to
explain this with example, please tell me if anybody knows
this.
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Answer Posted / srikanth
Balance Sheet Will Prepared on the Basis of Trail balance.
A balance Sheet indicates the Financial worth of the
Compnay. According To Companies Act 1956, A Balance Sheet
shuld Consists of Capital, Reserves & surplus,
Currentlialities ( Liabilities) and Fixed Assets, Current
Assets, Preliminary Expenditure ( Assets ). source of the
funds treated as Liabilities and Application of Fundas are
Treated as Assets. so ASSETS = CAPITAL + CURRENT LIABILITIES
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