How do you balance a balance sheet?

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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

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Similar questions

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

From the following Balance Sheet of Global Ltd., you are required to calculate Return on Investment for the year 2018-19:

BALANCE SHEET OF GLOBAL LTD. as at 31st March, 2019
Particulars	Note No.	Amount ₹
I. EQUITY AND LIABILITIES 1. Shareholder's Funds
(a) Share Capital–Equity Shares of ₹ 10 each Fully paid		5,00,000
(b) Reserves and Surplus		4,20,000
2. Non-Current Liabilities
15% Long-term Borrowings		16,00,000
3. Current Liabilities		8,00,000
Total		33,20,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets		16,00,000
(b) Non-Current Investments:
(i) 10% Investments		2,00,000
(ii) 10% Non-trade Investments		1,20,000
2. Current Assets		14,00,000
Total		33,20,000

Additional Information: Net Profit before Tax for the year 2018-19 is rs 9,72,000.


Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES 1. Shareholder's Funds
(a) Share Capital		3,50,000	3,00,000
2. Non-Current Liabilities
Long-term Borrowings		1,00,000	2,00,000
3. Current Liabilities :
Trade Payables		1,50,000	1,00,000
Total		6,00,000	6,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible)		4,00,000	3,00,000
2. Current Assets
Trade Receivables		2,00,000	3,00,000
Total		6,00,000	6,00,000

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.

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