Easy Office
LCI Learning

Difference between...??


01 June 2014 Dear Expert,
I would like to understand the difference between Balance Sheet & Statement of Affairs Account ??

01 June 2014 A Balance Sheet depicts the details of capital inflow and outflow of the organization. The Statement of affairs is similar to the balance sheet however, the diffrence is of the preparor. Balance sheet is prepared under the double entry system, whereas, the statement of affairs is prepared under the single entry system by the non-profit entities.

Further, the authenticity of the balance sheet can be traced from the books maintaiined by the preparor however, in a statement of affairs it is difficult to measure the authenticity as the same owning to single entry system followed by the entities.

Also, balance sheet takes into consideration the profit or loss earned by the entity over a period while calculating the portion of retained earning and deciding the dividend payments. In case of statement of affairs, the excess of income over expenditure or vice versa is considered. The organizations preparing a ststement of affairs can be contractors for indivdual contracts, trusts governing the assets of the beneficiaries, etc.

01 June 2014 Can i show personal Assets as well as Fixed Cost in the Statement of affairs ??






You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries