Financial Accounting – 5

Dear Friends welcome back to the study of Financial Accounting. Please recall that we used a fictitious case study for an intuitive understanding of the three fundamental accounting statements. Now we shall undertake a more detailed understanding of the principles behind them, so that we may be able to apply them in our different circumstances. We shall follow the earlier pattern, where Bala Sir interacts with the ladies of a Self Help Group (SHG) to explain the theory. In this lesson, we shall discuss in some detail the ‘Balance Sheet Equation’. We have added a few exercise questions at the end, so that the reader may try them out, as a self-check on their own comprehension.