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Answer Posted / diksha
well the balance sheet is a statement showing the value
assets and liabilities of the business as on the last date.
It tallies because of the double entry system which says
taht every transaction affects atleast two persons or
parties or every debit has an equal and corresponding
credit.
| Is This Answer Correct ? | 18 Yes | 4 No |
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outstanding expenses are the expenses that "unpaid"at the end of the accounting period e.g.salaries rent so they all come to under nominal accounts which is debt all expenses and losses and credit all gains since they are unpaid hence they must be credited
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