Question 37 of 50
Q.Differentiate between Statement of affairs and Balance Sheet.
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2024Subjective· 3mImportance★★★★★
74% · 37/50 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →A Statement of Affairs is an estimate of assets and liabilities from incomplete records used to find capital; a Balance Sheet is an accurate statement prepared from double-entry books to show financial position.
This is a standard distinction in the Tamil Nadu HSC Class-12 Accountancy chapter on Accounts from Incomplete Records.
| Basis of difference | Statement of Affairs | Balance Sheet |
|---|---|---|
| Records used | Prepared from incomplete records (single entry) | Prepared from complete double-entry records |
| Reliability | Values are largely estimated, so less reliable | Values are ledger-based, so more reliable/accurate |
| Objective | Mainly to ascertain the capital (opening/closing) | To ascertain the financial position of the business |
| Capital figure | Capital is the balancing figure | Capital is taken from the Capital Account |
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.