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1 Find the roles that have facilitated preparation of balance sheet.
Ans. Balance sheet provides details regarding the financial performance of a company. This as a consequence, requires the functions of various segments that work together. It involves the preparing of journal, ledger, trial balance, profit and loss account, balance sheet. Each of these segments have a role to play in order to formulate the eventual financial report. For eg. Vouchers may act like the source document that helps in identifying transactions regarding the procurement and sales of agricultural products like tobacco in ITC ltd. There are other expenses like stationery, salary payments, rent payments, advertisements, transportation expenses etc. also form the basis for accounting entries that facilitates the making of the balance sheet. Balance sheet, hence assimilates information from all the other segments of financial accounts.
4. Identify rules and logics applied for preparation of balance sheet.
Ans. The rules and logic applied to the preparation of the balance sheet follows the standard accounting practice. The balance sheet has entry on two sides on the basis of whether the entry is a liability or an asset. Therefore, this helps in checking, reviewing and controlling the different functionalities of an organisation. The balance sheet needs to tally on both the sides. i.e the following equation must be satisfied- (assets) = (liabilities) + (shareholder’s equity). This means that any payments that are paid should be made either through borrowings (liabilities) or through shareholder’s equity. Hence, any discrepancy arising in any of the functions would offset problems in other functions as well.
5. How many process actually indentify prepare your balance sheet?
Ans. There are various processes that support the formation of a balance sheet. These include preparation of voucher entries, journal entries, ledger accounts, trial balance, trading
Ans. Balance sheet provides details regarding the financial performance of a company. This as a consequence, requires the functions of various segments that work together. It involves the preparing of journal, ledger, trial balance, profit and loss account, balance sheet. Each of these segments have a role to play in order to formulate the eventual financial report. For eg. Vouchers may act like the source document that helps in identifying transactions regarding the procurement and sales of agricultural products like tobacco in ITC ltd. There are other expenses like stationery, salary payments, rent payments, advertisements, transportation expenses etc. also form the basis for accounting entries that facilitates the making of the balance sheet. Balance sheet, hence assimilates information from all the other segments of financial accounts.
4. Identify rules and logics applied for preparation of balance sheet.
Ans. The rules and logic applied to the preparation of the balance sheet follows the standard accounting practice. The balance sheet has entry on two sides on the basis of whether the entry is a liability or an asset. Therefore, this helps in checking, reviewing and controlling the different functionalities of an organisation. The balance sheet needs to tally on both the sides. i.e the following equation must be satisfied- (assets) = (liabilities) + (shareholder’s equity). This means that any payments that are paid should be made either through borrowings (liabilities) or through shareholder’s equity. Hence, any discrepancy arising in any of the functions would offset problems in other functions as well.
5. How many process actually indentify prepare your balance sheet?
Ans. There are various processes that support the formation of a balance sheet. These include preparation of voucher entries, journal entries, ledger accounts, trial balance, trading