Balancesheet preparation

Well your idea behind the query is more of ethical than logical, uptill now I haven't studeied any such fact about Balance Sheet. However different people have different approach to the making of BS, like I go in order of the ledger accounts that is arranged in the trial balance. Whichever a/c i encounter, I place it in its place in the BS regardless of it being an asset or a liability.

I do have friends who first fill either side of the Balance Sheet then corresponding side, however not as a rule that the liability side has to be managed first.

Though, we do have groups in both sides which contain the ledger accounts, all we have to ensure while BS preparation is that these groups are properly maintained and all accounts are categorised in the requisite group only. Anyway do consult others as well, I could be wrong I guess.

Hi Mayank,

I agree up to some extent but not completely

Hi All,

Hi Mayank Gee, You have said " Ethical and Logical" when i have asked the same with the seniors, they replied that, if you are good at accounting concepts and convents what ever the question i have mentioned above is perfectly correct.

Accounting concepts and conventions are pillars based on these only accounting standards has built up...