How do you balance a balance sheet?

Open in App

Solution

A balance sheet can be balanced by comparing total assets with the total liabilities and shareholder’s equity.

In other words a balance sheet is balanced when

Total assets = Total liabilities + Shareholder’s equity

Also read:

Accounts From Incomplete Records

Marshalling of Assets and Liabilities

Accounting MCQs

What Is the Balance Sheet Equation

Balance Sheet Vs Consolidated Balance Sheet

Learn about more questions and answers on business studies and various other commerce topics from our website.

Suggest Corrections

Similar questions

On dissolution, how will you deal with partner's loan if appears on the

(a) assets side of the balance sheet,

(b) liabilities side of balance sheet.

On dissolution, how you deal with partner’s loan if it appears on the

(a) Assets side of the Balance Sheet.

(b) Liabilities side of the Balance Sheet.

On dissolution, how you deal with partner’s loan if it appears on the

(a) Assets side of the Balance Sheet

(b) Liabilities side of the Balance Sheet


Particulars	Note No.	31st March, 2019, (₹)	31st March, 2018, (₹)
I. EQUITY AND LIABILITIES 1. Shareholders' Funds
(a) Share Capital		15,00,000	10,00,000
(b) Reserves and Surplus		10,00,000	10,00,000
2. Non-Current Liabilities
Long-term Borrowings		8,00,000	2,00,000
3. Current Liabilities
(a) Trade Payables		5,00,000	3,00,000
Total		38,00,000	25,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets		25,00,000	15,00,000
(ii) Intangible Assets		5,00,000	5,00,000
2. Current Assets
(a) Trade Receivables		6,00,000	3,50,000
(b) Cash and Cash Equivalents		2,00,000	1,50,000
Total		38,00,000	25,00,000

Join BYJU'S Learning Program