Balance Sheet may be defined as the statement of financial position of a company that sets out
(arrange and present systematically) its assets and liabilities at a certain date. The Assets are shown
on the right hand side, whereas liabilities and capital on the left hand side.
➢ Characteristics of Balance Sheet:
1t a particular de, rather the last day of financial year.
- Balance sheet is prepared after the preparation of profit and loss account and it includes
only two types of accounts namely, Real and Personal Accounts.
- Both the sides of the balance sheet must have the same totals (must be equal to e