shown in a tabular form as under :

shown in a tabular form as under : Basis of difference Statement of affairs Balance sheet Reliability It is less reliable as it is prepared It is more reliable as it is prepared from incomplete records. from double entry records. Objective The objective of preparing state- The objective of preparing balance ment of affairs is to estimate the sheet is to show the true financial balance in capital account on a position of an entity on a particular date. particular date. Omission Omission of assets or liabilities Omissions of assets or liabilities cannot be discovered easily. can be discovered easily and can be traced from accounting records. Fig. . : Showing comparison between statement of affairs and balance sheet Do It Yourself Identify a small shopkeeper in your locality, ask him about the accounting records maintained by him. If he is not maintaining the records as per double entry system, list the reasons thereof and ask him how does he compute profit or loss.