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Balance SheetA balance sheet is statement of assets and liabilities of an enterprise at a given date.A balance sheet is often described as a "snapshot of a company's financial condition".

Of the three basicfinancial statements, the balance sheet is the only statement which applies to a single point in time of a business calendar year.Balance Sheet of as of at DateLiabilitiesRsAssetsRs Current Liabilities:Current Assets: Bank Overdraft Cash in hand Bills Payable Cash at Bank Outstanding Expenses Bills Receivable Sundry Creditors Debtors Income received in advance Prepaid ExpenseLong term liabilities: Accrued Income Loan Closing Stock CapitalInvestments: Opening Balance Fixed Assets Add: Net Profit (Less: Net Loss) Furniture and Fixtures Plant and Machinery Less: Drawings Building Land Good will Total TotalPrepare a Balance sheet from following Rs RsPlant and Machinery1,00,000Furniture and Fixture20,000Prepaid expenses1000Accrued Income2000Income received in advance2000Outstanding Expenses1000Bills Payable3000Bills receivable2000Sundry Debtors1,00,000Creditors99000Bank Overdraft10,000Investments in Shares10,000Long Term Loan1,00,000Closing stock85,000Capital 2,00,000Building 1,00,000Land10,000Good will10,000Drawings10,000Net Profit50,000Cash in Hand5000Cash at Bank10,000Solution Particulars RsParticularsRsCurrent LiabilitiesCurrent AssetsBank Overdraft10,000Cash in Hand 5000Bills Payable 3,000Cash at Bank10,000Outstanding Expenses1,000Bills Receivable2,000Creditors99,000Debtors1,00,000Income received in advance2000Paid Expense 1,000Long term LiabilitiesAccrued Income 2,000Loan1,00,000Closing stock 85,000Opening Balance 2,00,000Shares of X ltd.10,000Add : Net Profit 50,000Furniture and Fixture20,000 2,50,000Plant and MachineryBuilding1,00,0001,00,000Less :Drawings 10,000240,000LandGood will 10,00010,0004,55,0004,55,000