How to Make the Balance Sheet of Company




Balance sheet is just like two type of personalities of a person. You can not tell the difference after seeing money whether it is asset or liability like who is who if you see double role of  me in above my video. But from both double role's behavior, you can compare. You can say that one person in the video is teacher who is teaching with full responsibility and other is student but he is not full responsible. He wants to show himself equal to teacher but he has not good quality of student. He did not stand to study just for 5 minutes and slept in standing position. By making balance sheet, we can compare every money of company. It has also two sides. One is liability and other is asset. Before writing any money in asset side or liability side, we see following things.

1. From where has it come?

- From shareholder, it means, it is liability as share capital fund.
- From Debentures, it means, we took loan and it is also liability as secured loan.
- From unsecured loan, it is also liability in the form of loan without any security.
- Stock money from creditor, we still did not pay supplier and he gave us money in the form of stock, it is also our liability as current liability.

- We use other person's services and still did not pay them, it is our liability as current liability. We say that these are our outstanding expenses.

- We did not provide services to others and get money, it means these are our liabilities in the form of advance income.

- We have some money for paying our liabilities. We can not give it to others. These are our liabilities in the form of reserves, surplus and provisions. For example, we kept some fund for paying income tax of company through e-filling of return. But still these money is in our hand. So, this will be liability in the form of provision for income tax.

All above persons to whom we have to pay money are very sincere  like the teacher in the video.

But still we also have to fill our assets. Assets are just like student in the video. A student can not think what can he become and what is his worth in the market but teacher knows who is he and how to develop him? Like this, every asset's value is on the basis of total value of liabilities. In above video, I just show liabilities because all assets will be from it and all assets value are not more than total value of our liabilities. But we have to classify all these assets on the basis of investment of our money.

- If huge  money is invested in any asset for long term, it will be our fixed asset.
 - If small money is invested in any asset for short term, it will be our current assets.
 - We deduct some money from these assets due to dead liabilities. These dead liabilities may be depreciation, bad debt,  provision for debtors and provision for discount on debtors.

- Some assets may be in the form of intangible like goodwill and patent.

 
 I think, you understand, "how to make the balance sheet of company?"  

Now, you should remember two things:

1st thing : You did not become student like the student in the video. You are the asset of my nation. You have to develop our nation. You should study very sincerely when you teacher teaches you.

2nd thing : You did not misuse of your company assets because every asset's resource is liability. Misuse of any asset means decreasing the goodwill of your company. If you think the about the development of company, you have to use its assets very effectively.  

COMMENTS

Comments on this Website
.
Share above Content to Your Friends



Name

access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
false
ltr
item
Accounting Education: How to Make the Balance Sheet of Company
How to Make the Balance Sheet of Company
https://img.youtube.com/vi/SJewoH8M7Vo/hqdefault.jpg
https://img.youtube.com/vi/SJewoH8M7Vo/default.jpg
Accounting Education
http://www.svtuition.org/2011/05/how-to-make-balance-sheet-of-company.html
http://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2011/05/how-to-make-balance-sheet-of-company.html
true
2410664366776677676
UTF-8
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock