-
- A balance sheet is a statement of assets and liabilities of a business organization at any particular date. The registered companies are required to follow Part I of schedule VI of the Companies Act, 1956 for recording the assets and liabilities in the balance sheet.
- The Balance Sheet items in all other cases are arranged either on
- Liquidity basis: When the assets and liabilities are arranged according to their realizability and payment preference it is liquidity order basis.
- Fixity bases: When the assets and liabilities are arranged on the assumption that these will be sold and paid only on the liquidation of business it is fixity basis.