This report reflects all the assets and liabilities of the company the last day of the financial year. Otherwise, the Balance sheet - is a list of all accounts of the company, after the profit and loss account was formed. It is actually a photo of the financial status of the company that day.

The assets of the company must always be equivalent with the liabilities and the equity capital of the company

ASSETS = EQUITY CAPITAL + LIABILITIES

                                                                                                Back