Introduction to Balance Sheet. What is a Balance Sheet ?

And balance it is known as the financial position of a company at a particular date. It tells us about the sources of funds ( equity and liabilities ) and application of funds ( assets ).

Sources of Funds : This is what company owe to others i.e. Equity and Liabilities

Application of Funds : These are the things that company owns, Which are required to run the operation of the company i.e. Assets

A balance sheet mainly contains three things.

1. Equity 

2. Liabilities

3. Assets

    Infibeam Avenue Balance Sheet

The main characteristic of a balance sheet is, it always balances.

i.e Sources of Funds = Application Of Funds

i.e Equity + Liabilities = Assets