Reading balance sheets

Thank you Gulshanji for nice sharing,but this is more undersatndable to commerce students.

Thank you Gulshanji for nice sharing,but this is more undersatndable to commerce students.

Obviously commerce students will understand better. But others should also have some idea if they invest in shares or otherwise have financial dealings.

yeah really useful guide to get the basic ideas and complete information of balance sheets.

I can't understand this much as I am from science group.Thanks for sharing.

I can't understand this much as I am from science group.Thanks for sharing.

It is good that you are a science student. A science student can understand anything better.

Balance sheet is just financial position of a company. Just think of your own financial position. You have some cash, a vehicle, some furniture, given some money on loan. This is asset. You have also taken loan from some one. This is liability. Assets minus liability is capital. balance sheet is only this much. individual, firm or company does not matter.

Although balance sheets are supposed to give a fair and true picture of the state of financial health of the company, some of them contain doctored stuff as Satyam case has amply proved!