Functions of balance sheet, Accounting Basics

The basic functions of a balance sheet are:

1. It provides the financial place of a company on any given date

2. It provides the liquidity picture of the concern.

3. It provides the solvency position of the concern.

The basic components of a balance sheet are:

1298_components of balance sheet.png

Pro-forma of a Balance sheet is as follows:

1590_proforma of balance sheet.png

Balance sheet of ABC Ltd as on 31st December 2005

Posted Date: 10/15/2012 5:39:08 AM | Location : United States

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