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.

  1. 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.
  2. Both the sides of the balance sheet must have the same totals (must be equal to e

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