Commerce Exam > Commerce Videos > Example : Balance Sheet
Example : Balance Sheet Video Lecture - Commerce
FAQs on Example : Balance Sheet Video Lecture - Commerce
| 1. What is a balance sheet in commerce? |  |
Ans. A balance sheet in commerce is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It presents a summary of a company's assets, liabilities, and shareholders' equity, showing how the company's resources are financed.
| 2. How is a balance sheet prepared in commerce? | |
Ans. A balance sheet in commerce is prepared by listing all the company's assets, liabilities, and shareholders' equity. Assets are categorized as current assets (e.g., cash, inventory) and non-current assets (e.g., property, equipment). Liabilities are classified as current liabilities (e.g., accounts payable) and long-term liabilities (e.g., loans). Shareholders' equity represents the company's net worth. The total assets should always equal the sum of liabilities and shareholders' equity.
| 3. What is the importance of a balance sheet in commerce? | |
Ans. A balance sheet in commerce is important as it provides valuable information about a company's financial health and stability. It helps stakeholders, such as investors, creditors, and analysts, to assess the company's ability to meet its financial obligations, its liquidity, and its overall financial performance. It also serves as a basis for financial analysis and decision-making.
| 4. How does a balance sheet differ from an income statement in commerce? | |
Ans. While a balance sheet in commerce provides a snapshot of a company's financial position at a specific point in time, an income statement shows a company's financial performance over a period of time, usually a year. The balance sheet focuses on the company's assets, liabilities, and shareholders' equity, while the income statement focuses on the company's revenues, expenses, and net income. Both statements are crucial for assessing a company's financial health from different perspectives.
| 5. How can a balance sheet be used for financial analysis in commerce? | |
Ans. A balance sheet in commerce can be used for financial analysis by calculating various financial ratios and indicators. For example, the current ratio (current assets divided by current liabilities) can indicate a company's short-term liquidity. The debt-to-equity ratio (total debt divided by shareholders' equity) can show the company's solvency and financial leverage. By comparing these ratios with industry benchmarks or historical data, analysts can gain insights into a company's financial performance and make informed decisions.
Text Transcript from Video
from the following balances prepare
balance sheet capital to lock net profit
for the year 1 lakh 50,000 provision for
taxes 75,000 liabilities 1 lakh advance
that's paid 60,000 fixed assets 3 lakh
and current assets 1 lakh 65,000 so we
need to prepare a balance sheet we have
two sides to a balance sheet liabilities
trapeze has cents in rupees so what are
the liabilities let us say capital is 2
lakh net profit I'm adding 1 lakh 50,000
we get 3 like 50000 provision for taxes
provision 75,000 and liabilities are the
liabilities let us say 1 lakh
so we are talking of a total of 5 not
25000 so I'd like 25,000 on the other
side we have fixed assets of 3 lakh
advanced tax paid advance tax 60,000 and
current assets of one leg 65,000 so we
are talking of 5 not 25,000
this is all the balance sheet would be
prepared with assets on this side
liabilities and capital the fixed asset
of a company is double of the current
assets and half of the capital is the
current assets of 3 lakh and investment
is for lab calculate the current
liabilities assuming that there are no
other items in the balance sheet the
fixed asset is double the current assets
and it is half the capital current
assets are current assets are 3 lakh the
fixed asset is therefore double this or
that is 6 lakh
because it is double fixed assets is 3
lakh into two investments is 4 lakh
investment for luck calculate the
current liabilities assuming that there
are no other so this is investment now
what is capital from the other side I
would have capital the fixed asset is
double of the current assets it is half
of the capital therefore capital must be
half of 6 lakh half of fixed assets
right it would be 3 learned so fixed
asset is double the current assets I've
got current assets given fixed assets
govern and half the capital I found out
capital so we have found out fixed asset
we have current assets and opti and
capital current assets are given
investments we have taken what is the
current liabilities this is 13 lakh this
also should be 13 that therefore current
liabilities should be balancing figure
of 10 lakhs balancing figure of NX
you
balance sheet capital to lock net profit
for the year 1 lakh 50,000 provision for
taxes 75,000 liabilities 1 lakh advance
that's paid 60,000 fixed assets 3 lakh
and current assets 1 lakh 65,000 so we
need to prepare a balance sheet we have
two sides to a balance sheet liabilities
trapeze has cents in rupees so what are
the liabilities let us say capital is 2
lakh net profit I'm adding 1 lakh 50,000
we get 3 like 50000 provision for taxes
provision 75,000 and liabilities are the
liabilities let us say 1 lakh
so we are talking of a total of 5 not
25000 so I'd like 25,000 on the other
side we have fixed assets of 3 lakh
advanced tax paid advance tax 60,000 and
current assets of one leg 65,000 so we
are talking of 5 not 25,000
this is all the balance sheet would be
prepared with assets on this side
liabilities and capital the fixed asset
of a company is double of the current
assets and half of the capital is the
current assets of 3 lakh and investment
is for lab calculate the current
liabilities assuming that there are no
other items in the balance sheet the
fixed asset is double the current assets
and it is half the capital current
assets are current assets are 3 lakh the
fixed asset is therefore double this or
that is 6 lakh
because it is double fixed assets is 3
lakh into two investments is 4 lakh
investment for luck calculate the
current liabilities assuming that there
are no other so this is investment now
what is capital from the other side I
would have capital the fixed asset is
double of the current assets it is half
of the capital therefore capital must be
half of 6 lakh half of fixed assets
right it would be 3 learned so fixed
asset is double the current assets I've
got current assets given fixed assets
govern and half the capital I found out
capital so we have found out fixed asset
we have current assets and opti and
capital current assets are given
investments we have taken what is the
current liabilities this is 13 lakh this
also should be 13 that therefore current
liabilities should be balancing figure
of 10 lakhs balancing figure of NX
you
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Nov 16, 2024 Last updated |
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