The characteristics of balance sheet are
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1. It is prepared at a particular date and not for a particular period .
2. It is prepared after the preparation of Profit and Loss Account . This is the reason why the profit and loss Account ( including the Trading Account ) and the Balance Sheet are together called the Final Accounts .
3. It shows financial position of a business as a going concern .
4. Balance sheet is not an account but only a statement of assets and liabilities . On the left - hand side , the liabilities of business are shown whereas on the right hand side assets of the business appear .
5. Total of assets side must be equal to the total of liabilities side ,i.e., two sides of the Balance Sheet must have same total . If total is not same , there is certainly an error
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