interview queryy

CA 720 views 4 replies

 why do in balance sheet we show liabilities first nd assets thereafter,both in vertical and horizantal form??

Replies (4)

look Rashmi,as far as my knowledge is concern there is no specific reason behind it BUT if the same is asked in interview you should smartly react on it, say you can answer.....

As we follow conservative approach in accontancy, we alwayes look at liabilities first.

ya, that may be the reason

LIABILITIES IS SOURCE OF INCOME FOR ASSETS THEREFORE IT IS FIREST IN BALANCESHEET.

Exactly ... First u get some money from some source say Equities or Loans and then you show where all did u use the money . I've learnt this is in my PCC Accountancy class . So there is a valid reason for it .


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