Answers

2016-01-25T21:30:28+05:30
1.Basis
Balance sheet is prepared on the basis of double entry system of book keeping. Statement of affairs is prepared on the basis of incomplete records.

2. Purpose
Balance sheet is prepared to present financial position of the business. Statement of affairs is prepared to find out either the amount of opening capital or closing capital.

3. Financial Position
Balance sheet shows the true financial position of the business. Statement of affairs does not show the true financial position of the business.
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