There is deep relationship between balance sheet and income statement. Both balance sheet and income statement affects each other which can be written in following words.
1. How does Income Statement Affect Balance Sheet Every change in our income statement will affect the strength of our balance sheet. We know that income statement shows the net income or net loss of business. Net income will increases our capital of business. So, with this, our balance sheet becomes more strong. Same excess capital will be in cash in this current time or in future. With this excess capital fund, we can promote our business. In the other side, if we are facing net losses whose information who got from our income statement. It will become the barrier of the growth of our balance sheet. Net loss will decrease our current capital. So, with low total capital, our working capital will also decreases. With this, we can face the difficulty of funds for our routine business activities. 2. How does Balance Sheet Affect Income Statement Balance sheet's power or weakness can directly or indirectly affect the income statement. If there is more debt and less own capital in our balance sheet, it will increase more burden of interest and our net profit will decrease directly from this. 
3. Relationship between Each Item of Income Statement and Balance Sheet All are assets and liabilities are personally connected with income statements items. We can make its list. a) Sales revenue is the the item of income statement but it represent cash in hand and account receivables in balance sheet. b) Cost of goods sold of income statement has relation with creditors for goods purchase (liability) and closing stock (current asset) in the balance sheet c) We can show the depreciation in income statement if we show any fixed asset in the balance sheet. Related Resources
.
$type=three$a=hide$cm=hide$s=hide$show=/2019/08/how-to-spend-money-intelligently.html$l=hide$c=9$d=
$type=three$a=hide$cm=hide$s=hide$show=/2019/08/how-to-buy-gold-from-paytm.html$l=hide$c=6$d=no
$type=three$a=hide$cm=hide$s=hide$show=/2013/06/tdr-vs-stdr.html$l=hide$c=30$d=no
$type=three$a=hide$cm=hide$s=hide$show=/2019/06/10-steps-to-become-better-investor.html$l=hide
Latest$type=blogging$a=hide$cm=hide$s=hide$d=hide$l=hide
- 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
- Diwali Messages
- documents
- dollar
- domain
- Downloads
- Dubai
- e-accounting
- earning
- education
- Education Loans
- employee
- EPF
- ERP
- euromoney
- examination
- excel
- excise duty
- expenses
- 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 apps
- Google Adsense
- 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
- Intangible
- interest
- international
- Internet
- Introduction of Tally 9
- inventory
- investment
- investment in Shares
- invoice
- IT
- Japan
- Job costing
- journal entries
- Journal Entries eBook Help
- Kalculate
- keyboard
- kindle
- kuwait
- laptop
- law
- LBT
- learning
- lease
- lecture
- ledger
- leducation
- Leverage Analysis
- liabilities
- lifo
- 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
- Online Accounting Course
- otcei
- pakistan
- parents
- Partnership
- pay pal
- Personal Finance
- 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
- truthfulness
- tuition
- UAE
- UGC - NET Commerce
- UK
- United Arab Emirates
- university
- usa
- valuation
- VAT
- Video
- Voucher and vouching
- wikipedia
- working capital
- youtube

[Latest ]$type=blogging$a=hide$cm=hide$s=hide$show=/2012/08/journal-entries-of-tds.html$d=hide$l=hi
$type=blogging$a=hide$cm=hide$s=hide$show=/2010/07/journal-entries-examples.html$d=hide$l=hide
Popular Contents
- Journal Entries of TDS
- Advantages of Management Accounting
- Factors Affecting Cost of Capital
- Journal Entries Examples
- How to make Delivery challan or Delivery Note in Tally.ERP 9
- Features of Accounting
- Journal Entries of Loan
- TDR vs STDR
- Most Difficult Journal Entries
- Journal Entries Examples of Depreciation
