Differentiate between Statement of Affairs and Balance Sheet.
Differentiate between Statement of Affairs and Balance Sheet.
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Difference between Statement of Affairs and Balance Sheet.
| Basis of Difference | Statement of Affairs | Balance Sheet |
| Reliability | Less reliable as it is prepared from incomplete records. | More reliable as it is prepared from double entry records. |
| Objective | The objective of preparing statement of affairs is to determine capital balance on a particular date. | The objective of preparing balance sheet is to show the true financial position of an entity on a particular date. |
| Omission | Omission of Assets and Liabilities cannot be discovered easily | Omission of Assets and Liabilities can be discovered easily and can be traced from accounting records. |
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