why do we prepare balance sheet as on a particular date and
not for a year?



why do we prepare balance sheet as on a particular date and not for a year?..

Answer / d.subramanian

At present or at a particular date what is the value(Net worth) of the company viz. cash,payable , receivable , capital and assets from income generated over a period of time ie. p&L. Hence Balance sheets prepared as on date and P&L for the period.

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