Balance Sheet

BALANCE SHEET  DEFINITION OF BALANCE SHEET Balance sheet can be defined as a statement showing the assets and liabilities of a business as at a given date. A balance sheet is not an account and so it does not have debit or credit side. Also it does not have balance brought down or balance carried down.   CLASSIFICATION OF ASSETS AND LIABILITIES Assets: These are the valuable resources of a business. Among these resources we have the ones that are more permanent in nature and others less permanent. The more permanent assets e.g. land and buildings, office equipment plant and machinery furniture and fittings, motor vehicles, etc are referred to as fixed assets. The less permanent ones are referred to as current assets. Examples of current assets are: stock, trade debtors, bills receivable cash at bank, cash in hand, etc.   Capital: This is worth the business owes the owner… Read More »BALANCE SHEET