What is a balance sheet ?

What is a balance sheet? If you are going to invest in the stock market then it is very important to understand it. It is important not only to know what the balance sheet is, but also to know how it is read and how to find out the health of that company by looking at the balance sheets of any company.

Learn how to read balance sheets

For those investing in the stock market, it is necessary that they are aware of the balance sheets and also know how to read them. If you also want to invest in the stock market, get the balance sheet of five companies listed in the stock exchange and study them. Until you have the self belief that you have been well understood by the balance sheet, you should avoid investing in the stock market.

Here we will tell you what is the balance sheet ? Balance Sheet is also called balance sheet or paper in Hindi. But here we will use the word "balance sheet" because this is the common practice. Many texts will come in today's text but I will try to explain it in simple Hindi.

What is a balance sheet?

The details of the assets, liabilities, and capital of a business or organization at a given time are called the balance sheet. Generally it is issued at the end of the financial year of the company or organization. The balance sheet is prepared after Profit and Loss Account ie Profit loss account. The balance sheet consists mainly of the following components:

Current Assets

Main articles such as cash, bank balances, advances, and raw materials come in it.


Any kind of investment made by the company.

Property, Plant and Equipment Property

These are also called Fixed Assets Fixed Assets. Land, buildings, machines, office equipment, carriage furniture etc. are counted in this item. These are also called Tangible Assets. Its Hindi meaning would be tangible property i.e. such property that can be seen by anyone.

Intangible Assets

Such property that can not touch The intangible assets of the company's goodwill or goodwill company are intangible assets. Apart from this, the names of the Copyrights Copyright, Patents Patents, Trademarks Trademarks, Brand Name Brands, Domain names are also examples of intangible Assets intangible assets. Here you can tell that companies often do not show intangible Assets intangible assets at their rightful price in the balance sheet. You can tell the exact values of these intangible Assets intangible properties in the days of Google, Facebook and Flipkart?

Current Liabilities

Most of the items in this item are expenses and liabilities which have been payable on the date of making the balance sheet. Like salary, laborers, income tax payable, interest payable etc.

Long Term Liabilities

Long term instruments, bond bond etc. will be in this item.

Let me tell you here that the balance sheet will always have a total of assets and liabilities (including share capital).

I have tried here to explain what is the balance sheet. How it is read, and seeing the balance sheet of any company, how to find out the health of that company will be given in the next article. How do you tell this article by commenting?
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