| Basis of Difference | Statement of Affairs | Balance sheet |
| Objective | It is prepared to determine the amount of capital at a particular date. | It is prepared to ascertain the true financial position. |
| Reliability | It is bases on estimates; hence, it is less reliable. | It is based on sophisticated and well developed principles; hence,it is more |
| Accounting Method | It is prepared from incomplete records of business transactions under single entry | It is prepared when accounts are maintained under double entry system. |
| Omission | Omission of assets and liabilities cannot be easily identified. | Omission of assets and liabilities can be easily identified,as omission will lead to mismatch of either sides of the balance sheet. |
