BASIC ACCOUNTING : BALANCE SHEET

IT IS A STATEMENT SHOWN THE FINANCIAL POSITION OF THE BUSINESS. BALANCE SHEET SHOWS ASSETS AND LIABILITY OF THE FIRM.


ASSETS ITEMS

ASSETS ARE THE PROPERTY OF BUSINESS

> FIXED ASSETS ( MACHINERY - FURNITURE - BUILDING - PLANT & MACHINERY )

> CURRENT ASSETS ( DEBTOR - BANK BALANCE - B/R - STOCK  ) REALIZED IN A YEAR

> TANGIBLE ASSETS ( TA HAVE PHYSICAL EXISTENCE ) (LAND - CASH -STOCK )

> IN-TANGIBLE ASSETS ( I-TA DOES HAVE PHYSICAL EXISTENCE )
    ( GOODWILL - PATENTS - TRADE MARKS )

> INVESTMENTS ( MADE BY FIRM IN STOCK - BONDS  ETC )

> FICTITIOUS ASSETS ( FA ARE NOT REAL ASSETS 

> WASTING ASSETS ( THESE ASSETS ARE ALSO DEPLETING ASSETS ) ASSETS SUCH
    AS MINES - TIMBER FOREST - QUARRIES )

> CONTINGENT ASSETS ( MEANS ITEMS CANNOT BE RECOVERED BY FIRM )  


LIABILITY ITEMS

AMOUNT WHICH FIRM IS LIABLE TO PAY LEGALLY

> OWNER CAPITAL ( OWNER MONEY FOR BUSINESS )

> LONG TERM LIABILITY ( LIABILITY WHICH REPAYABLE AS PER LONG GIVEN    
   PERIOD

> CURRENT LIABILITY ( REPAYABLE WITHING A YEAR )

> CONTINGENT ( UNCERTAIN LIABILITY LIKE BILLS DISCOUNTED & ENDORSED -
    DISHONORED - UNPAID CALL ON INVESTMENT )