Question

what account appear in the Balance Sheet? Which ones do not?

Answer 1

Answer:

Balance Sheet:

It is a statement that is prepared at the year-end by every company to disclose its financial position. It mainly comprises of three sections. They are:

• Equity: Retained earnings, paid-up capital etc., i.e., the net worth of the company
• Liabilities: payable taxes, creditors, short-term and long-term debt etc.,
• Assets: debtors, prepaid expenses, stock, fixed assets etc.,

Accounts that do not appear on the balance sheet are:

• Income accounts: Rental income, other incomes etc.,
• Expense accounts Office expenses, stationery, rent, electricity etc.,
• Purchases and sales
• Labour accounts (Wages)