What are the difference between Balance Sheet and Statement of Affairs?

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kavitaKumari · Answer 1 · 2021-07-08T08:09:36+0000

Balance Sheet	Statement of Affairs
1. It is prepared on the basis of those books which are maintained under the double - entry system.	1. It is prepared on the basis of information from incomplete records
2. It is prepared to show the financial position of the concern.	2. It is usually prepared to find our capital.
3. Value of asset and liabilities in a Balance sheet are based on ledger balances	3. Value of assets and liabilities in a statement of affairs are based on estimates
4. Omission of assets or liabilities can easily be found out when Balance sheet disagree.	4. It is difficult to locate omission of assets or liabilities in statement of affairs.