What is the need for preparing Balance sheet?

Answer 1

Aside from being required by law in many instances, the Balance Sheet is a fundamental statement and summary of one of the three most important aspects of a business that can be stated in dollar terms. (The others being the Income Statement and the Statement of Changes in Financial Position.) If the Income Statement shows what you 'got' and where it 'went' (and it does), then the Balance Sheet shows what you 'have'. Knowing what you 'have' is important for a business because it shows the 'assets' at your command available to be used in the conduct of the business in which you are engaged, and the 'liabilities' that you are responsible for repaying, as well as the 'equity', or that part of what you have that belongs to you and you alone. In the case of public companies that are required by law to publish financial statements, the Balance Sheet shows what investors are buying a piece of (in addition to the future earning potential inferred from the Income Statement), and how large the liabilities are compared to their share. In the case of private companies, knowing these things is necessary to run the business successfully, and ultimately, if the company assumes liabilities, how 'solvent' the company is, or, crudely, how close it is to going bankrupt. To put it another way, the Balance Sheet simply represents the final summary of the accounting of all that you own, all that you owe, and what's left for you.

Answer 2

a trial balance with all the entries, but while finalising the trial balance, you have to consider major parts like fixed assets depreciation, deferred tax assets or liabilities,income tax calculation,provision for gratuity, bonus etc etc.,

Answer 3

i WANT TO SEE MY PAYMENTS AND MY LOAN BALANCE. THANK YOU

Answer 4

A balance sheet - is a summary of the income and expenditure of a company. It's important because it shows 'at a glance' what assets or debts a company has.