how do we ascertain the financial positionof the business
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By preparing balance sheet we can ascertain the financial position of the business
I have attached balance sheet format for better understanding
hope its useful
I have attached balance sheet format for better understanding
hope its useful
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sujiritha95:
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Answered by
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BY PREPARING TRADING ACCOUNT TO FIND GROSS PROFIT AND THEN P &L A/C TO FIND AND NET PROFIT.
THEN PUTTING THAT INTO LIABLITIES SIDE OR BY ADDING TO CAPITAL. WE CAN PREPARE A BALANCE SHEET.
WHICH CONTAINS TOTAL ASSETS:- FICTIOUS ASSETS, CURRENT ASSETS, FIXED ASSETS AND CASH
AND TOTAL LIABILITIES :- LIKE BILL PAYABLE AND CREDITORS AND MORE ON CAPITAL OF OWNER AND ADDING PROFIT INTO CAPITAL OR SUBSTRACTING LOSS AND THEN LESS DRAWINGS.
BY THIS WE CAN KNOW THE FINANCIAL POSITION OF A BUSINESS
IN SOLE PROPRIETORSHIP IT IS DONE BUT IN PARTNERSHIP THERE IS P&L APPROPRIATION ACCOUNT ALSO AND IN COMANY IT IS TOTALLY DIFFERENT.
I HOPE THIS WILL HELP YOU.
AND BELOW THERE IS A FORMAT OF BALANCE SHEET TO HELP YOU UNDERSTAND ACCOUNTS.
THEN PUTTING THAT INTO LIABLITIES SIDE OR BY ADDING TO CAPITAL. WE CAN PREPARE A BALANCE SHEET.
WHICH CONTAINS TOTAL ASSETS:- FICTIOUS ASSETS, CURRENT ASSETS, FIXED ASSETS AND CASH
AND TOTAL LIABILITIES :- LIKE BILL PAYABLE AND CREDITORS AND MORE ON CAPITAL OF OWNER AND ADDING PROFIT INTO CAPITAL OR SUBSTRACTING LOSS AND THEN LESS DRAWINGS.
BY THIS WE CAN KNOW THE FINANCIAL POSITION OF A BUSINESS
IN SOLE PROPRIETORSHIP IT IS DONE BUT IN PARTNERSHIP THERE IS P&L APPROPRIATION ACCOUNT ALSO AND IN COMANY IT IS TOTALLY DIFFERENT.
I HOPE THIS WILL HELP YOU.
AND BELOW THERE IS A FORMAT OF BALANCE SHEET TO HELP YOU UNDERSTAND ACCOUNTS.
Attachments:
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