Commercial Applications

State any two uses of Balance Sheet.

Accounting

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Answer

Two uses of Balance Sheet are:

  1. Shows financial position — The Balance Sheet shows the assets owned and liabilities owed by the organisation on a specific date, thus depicting its overall financial position.
  2. Depicts Capital Fund — It shows the Capital Fund of the organisation, which reflects the accumulated surplus and contributions like life membership fees, entrance fees, legacies and donations of capital nature.

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