A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial …
Goods amounting to ₹45,000 were sold for ₹60,000 on a cash basis. It affects Cash and Inventory on the assets side and capital on the other side. There is an increase in cash by ₹60,000 and a decrease in inventory …
Purchased goods worth ₹80,000 for cash and for ₹ 35,000 in credit. It affects Cash and Inventory on the assets side and liability on the other side. There is a decrease in cash by ₹ 80,000 and an increase in …
Purchased office furniture for ₹ 1,00,000 and made payment by cheque. It affects assets side only. Furniture increases by ₹1,00,000 and by the same amount bank decreases.
Ex-Deposited ₹ 6,00,000 into the bank. It affects the assets side only.  Cash decreases by ₹ 6,00,000 and by the same amount bank increases.
Liabilities are obligations or debts that an enterprise has to pay at some time in the future. They represent creditors’ claims on the firm’s assets. Liabilities are classified as current and non-current.