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How to Understand the Balance Sheet and Other Periodical Statements

How to Understand the Balance Sheet and Other Periodical Statements


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About the Book

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1903 edition. Excerpt: ...Sheet is a balance Profit of.. S7 11 8 On the Credit side are: --Cash balance at Bank.... 388 16 6 Cash balance in hand.... 24 o 10 Which added together make a Cash total of i 413 17 4 By deducting from the balance Profit the total Cash, a balance Profit is left amounting to.... 94 14 4 Now as the totals of both sides of the Balance Sheet are of the same amount, (at least) this sum, g 14s. 4d., not being in cash, must of necessity be represented somewhere or other amongst the remaining items on the Credit side. This is merely to illustrate the idea, but it must be remembered that, strictly speaking, one must not as a rule pick out an item in the Balance Sheet and assume as a matter of course that it is represented by one or more selected items or part thereof on the other side; for the debit items, as a whole, are represented by the credit items, as a whole, and it is impossible without keeping them all in view to judge which represents which. There are exceptional cases where this can clearly be done, and an item on one side "ear-marked" or identified as representing an item on the other. This happens, to give a familiar instance, in case of a Reserve Fund invested in Securities outside the business, when the Reserve appearing on the Debit side of the Balance Sheet would be represented by the Investment Account on the Credit side. The particulars contained in a Balance Sheet may of course be reduced, for one's personal information, into, a smaller compass by summarising items of the same class on either side, when the resulting items, forming a condensed Balance Sheet, may be taken judiciously against one another, debits against credits. This item, Profit and Loss Account, $oy us. 8d., being on the Debit...


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Product Details
  • ISBN-13: 9781151317476
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 18
  • Spine Width: 1 mm
  • Width: 189 mm
  • ISBN-10: 1151317470
  • Publisher Date: 01 Jul 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 54 gr


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