Why is balance sheet called the second trial balance?
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Balance sheet is the list of all assets and liabilities.
It also referred as 2nd trial balance as it is prepared with the balance of all ledger account.
Trial balance is also the statement to know the financial position of the business. It has two sides. One is asset side and other is liability side..
Assets side records all the assets with their amount and liability sides record all liabilities with their amount.. of the business..
It also referred as 2nd trial balance as it is prepared with the balance of all ledger account.
Trial balance is also the statement to know the financial position of the business. It has two sides. One is asset side and other is liability side..
Assets side records all the assets with their amount and liability sides record all liabilities with their amount.. of the business..
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