1. The balance sheet is provided after the preparation of the Trading Account and Profit and Loss Account.
2. Balance sheet for a single business is also known as the Statement of Affairs.
3. To provide Balance Sheets, information on all business assets and liabilities is required.
4. The steps to prepare the Balance Sheets are as follows:
(a) Look for initial capital and final capital values
(b) Look for net profit or loss either through a capital comparative or analytical method.
(c) Preparing the Balance Sheet.