abhishreshthaa
Abhijeet S
COMPARATIVE BALANCE SHEET
A comparative balance sheet is a balance sheet is a balance sheet which is prepared to facilitate the comparison of assets, liabilities and proprietor’s capital of a business on two different dates and to find out the changes, i.e., the increase or decrease, in the various assets, liabilities and owner’s capital between two dates.
A comparative balance sheet is provided with columns for
1. The absolute data of the balance sheet of the preceding period in money values.
2. The absolute data of the balance sheet of the current period in money values.
3. The changes, i.e., the increase or decrease in the various items of the balance sheet in money value
4. The changes, i.e., the increase or decrease in the various items of the balance sheet in terms of percentage and
5. Comparison of the absolute data of the two balance sheets expressed in ratios, where it is considered necessary.
A comparative balance sheet shows not only the balances of assets, liabilities and owner’s fund as on different dates, but also the amount of changes, i.e., the increase or decrease in the assets, liabilities and owner’s fund between the two dates.
That means, while the emphasis in a single balance sheet is on status (i.e., present condition), the emphasis in a comparative balance sheet is on change, rather than status.
A comparative balance sheet is a balance sheet is a balance sheet which is prepared to facilitate the comparison of assets, liabilities and proprietor’s capital of a business on two different dates and to find out the changes, i.e., the increase or decrease, in the various assets, liabilities and owner’s capital between two dates.
A comparative balance sheet is provided with columns for
1. The absolute data of the balance sheet of the preceding period in money values.
2. The absolute data of the balance sheet of the current period in money values.
3. The changes, i.e., the increase or decrease in the various items of the balance sheet in money value
4. The changes, i.e., the increase or decrease in the various items of the balance sheet in terms of percentage and
5. Comparison of the absolute data of the two balance sheets expressed in ratios, where it is considered necessary.
A comparative balance sheet shows not only the balances of assets, liabilities and owner’s fund as on different dates, but also the amount of changes, i.e., the increase or decrease in the assets, liabilities and owner’s fund between the two dates.
That means, while the emphasis in a single balance sheet is on status (i.e., present condition), the emphasis in a comparative balance sheet is on change, rather than status.