Question

Prepare a balance sheet of Mr narayani as on 31-3-2020 answer
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Answer 1

Answer:

For preparing the Balance sheet of Mr. Narayani, we need the details of ledger accounts. Balance sheet will be prepared on the basis of Profit & Loss account basis.

Explanation:

To prepare the balance sheet we need to follow the below steps.

Step 1: Pick the balance sheet date. ...

Step 2: List all of your assets. ...

Step 3: Add up all of your assets. ...

Step 4: Determine current liabilities. ...

Step 5: Calculate long-term liabilities. ...

Step 6: Add up liabilities. ...

Step 7: Calculate owner's equity. ...

Step 8: Add up liabilities and owners' equity.

Most important that all the accounts ledger should reconcile and tallied as per their accounts.

Hope the above steps will be helpful to you.

Thanks,

Girish Bhatia