alleryStart learning →In a statement of affairs, on which side are the balances of assets shown?
AOn the left side, beside liabilities
BOn either side, as convenient
COn a separate statement altogether
DOn the right side of the statement
Answer & Solution
Correct answer: D. On the right side of the statement
1. The textbook is explicit about the layout of the statement.
2. The balances of assets are shown on the right side.
3. The balances of liabilities are shown on the left side.
4. Capital, being the difference between the two totals, appears on the liabilities side as the balancing figure.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", §1.7.3_
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