Financial Statements - I

trial balance (example - ) to show how the accounts of assets and liabilities of Ankit would be presented in the balance sheet. Trial Balance of Ankit as on March , L.F. Debit Credit Cash Bank Creditors , % Long-term loan (raised on April , ) Furniture Commission received Rent of building , Debtors , , , , , , Fig. .

: Showing the accounts of assets and liabilities in the trial balance of Ankit Balance Sheet of Ankit as at March , Liabilities Assets Furniture Add Profit , Cash % Long-term loan Bank Creditors Debtors , , , Fig. . : Showing the balance sheet of Ankit . .

Relevant Items in the Balance Sheet Items which are generally included in a balance sheet are explained below : ( ) Current Assets: Current assets are those which are either in the form of cash or a can be converted into cash within a year. The examples of such assets are cash in hand/bank, bills receivable, stock of raw materials, semi-finished goods and finished goods, sundry debtors, short term investments, prepaid expenses, etc. ( ) Current Liabilities : Current liabilities are those liabilities which are expected to be paid within a year and which are usually to be paid out of current assets. The examples of such liabilities are bank overdraft, bills payable, sundry creditors, short-term loans, outstanding expenses, etc.