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Balancesheet value

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(Querist)
12 December 2014 I have query. I prepared balancesheet for current month. I found current month balancesheet value is less than last month. My boss said this can never happen balance sheet value never reduces
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DrSANGITA PHD MBA(usa)CACSCWA

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DrSANGITA PHD MBA(usa)CACSCWA (Expert)
12 December 2014 Assuming that you are Mentioning that the Gross Total of Assets & Liability ( B/S Toatl have Reduced Compared to Previous Period B/s ) Than Your Boss is not always correct, B/s Value can be lower/Lesser than prevoius B/s
E.g Opening B/s has Liability say Crs at 100000/- & Drs at 90000/- & Cash at 10000/-
Your B/s total in this case is 100000/- Now consider you have Paid your Creditors Rs 7000/- So your Crs will become 93000/- Hence your Liability Side Total is 93000/- & Asset side Drs ( Assumed No Recovery Done in this period) will Remain at 90000/- & Cash since paid to Crs Rs7000/- Bal is Rs 3000/- This brings your Asset side to 93000/- See the Balance Value is Reduced.
Hope your Query is Solved, Then Go & show your Boss & Clear his Misconceptions
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Rupesh Jain

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Rupesh Jain (Expert)
15 December 2014 its not correct, due to if you make payment in this month to supplier or payment received from customer then b/s total will reduce.
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
15 December 2014 aGREE WITH DR SANGEETA...................
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