Diffrence between statement of affairs and balance sheet??

1.	Diffrence between statement of affairs and balance sheet??
Answer» Small traders and partnership firms, do not maintain their books of accounts as per double entry system. They used to keep a track of cash and credit transactions only. However, at the end of the financial year, these firms also want to know the position of business. For this purpose, statement of affairs is prepared at the beginning and at the ends of the period, so as to determine the overall change in the capital, during the financial year.

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