Balance example sentences

Since, the accounting equation depicts the fundamental relationship among the components of the balance sheet, it is also called the Balance Sheet Equation.The amount of premium is credited to Securities Premium account and is shown on the liabilities side of the balance sheet under the head “Reserves and Surpluses”.In the bank statement, where the balance is followed by Dr.(see illustration 3) The following solved illustrations will help you understand dealing with favourable balance as per cash book and passbook.It usually applies to the two important financial statements, namely, Balance Sheet and Income Statement prepared in a comparative form.Exclude the opening and closing balances of cash and bank as they are not an income.If the two balances differ, the entries in both the books are compared and the items on account of which the difference has arisen are ascertained with the respective amounts involved so that the bank reconciliation statement may be prepared.For example, ratio of credit sales to debtors and bills receivable known as debtor turnover ratio is calculated using one figureure from income statement (credit sales) and another figureure from balance sheet (debtors and bills receivable).Imbalance is found when all three sides of the P-O- triangle are negative, or two sides are positive, and one side is negative.Such errors do not affect the tallying of the trial balance.In the process, fiscal policy creates a surplus (when total receipts exceed expenditure) or a deficit budget (when total expenditure exceed receipts) rather than a balanced budget (when expenditure equals receipts).Hence, at the end of each page of the journal book, the amount columns are totaled and carried forward (c/f) to the next page where such amounts are recorded as brought forward (b/f) balances.When we analyse the transactions, we actually try to know that how balance sheet of a business entity gets affected.There are traditional cultures like Chinese, Indian, and Latin American which hold that good health results from the harmonious balance of various elements in the body, and ill-health results when such a balance is lost.But these two aspects need to be balanced and management at times, has to compromise with efficiency.