Difference between Balance Sheet and Statement of Affairs

In the Financial sector or in different businesses, all the finances expenses, credits and debits are maintained by the companies to ensure all the accounts are well maintained to know their profits and losses. All the above following attributes are updated daily or frequently using the balance sheet and statement of affairs. The balance sheet and statement of affairs are the formats in which the daily data of the company or a business are inserted.

What is Balance Sheet?

The balance sheet can be used to show the financial state or position of attributes like expenses, debits, credits of a company or a business this are updated on daily basis. So, we can easily know the financial state or financial position of an attribute of the company on the date. The balance sheet can be more dependable, and it is prepared on the basis of the all records present and also with the help of the exact figures.

What is Statement of Affairs?

The statement of affairs is a procedure to estimate the capital account balance on a particular date. The statement of affairs is updated daily. So, we can easily find out their balance of capital amount on a particular date. The statement of affairs is less dependable or reliable because of its estimated values. The statement of affairs uses incomplete records and stores them which are inaccurate.

Advantages of Balance Sheet

• The balance sheet statements use the complete information or complete records so the statement gives more accurate information about an attribute in a particular day.
• Balance sheet statements are more reliable and dependable because of their accuracy.
• It provides a clear-cut picture of actual financial level or financial position of the company or a business.

Advantages of Statement of Affairs

• The statement of affairs can also be prepared when the complete information about an attribute is not present.
• We can also estimate the value of the attribute in a business or a company.
• The balance capital of a company or business can be easily estimated without complete information about an attribute.

Disadvantages of Balance Sheet

• The balance sheet statement can only be prepared when the information of the attribute is complete.
•  The Balance sheet statements are somewhat harder to prepare because they can only be prepared when there is complete information about an entity.

Disadvantages of Statement of Affairs

• The statement of affairs statement had got a lot of disadvantages.
• The double entry system in the statement of affairs is not strictly followed.
• The statement of affairs cannot be dependable because of their inaccuracies.
•  The statement of affairs is mainly prepared on the basis of incomplete records.
• The accuracy of the statement of affairs is very less due to the information on which it is prepaid.
• The tracing of a particular entity on a particular day is hard.
• These are the major disadvantages of the Statement of Affairs.

Difference between Balance Sheet and Statement of Affairs in Tabular Form

Balance Sheet	Statement of Affairs
This statement is prepared over the account of complete records and from the amount of well define records of dual or double entry system.	The statement of affairs is prepared 2 estimate the values of the attributes from the incomplete records on a particular day.
The balance sheet statement can be more arithmetically accurate and it can be verified by preparing the trial balance.	From this statement the trail balance can't be prepared in single entry system.
The financial value of a business can be verified or Shaun in a true and fair view.	The statement of affairs is very less accurate arithmetically when compared to balance sheet statement and the accuracy of attributes can't be verified.
The balance sheet statement is more reliable and dependable because it uses the complete records of a company or a business which are made in a day.	Have the statement of affairs can't give an actual picture of a company or a business financial position on a particular day.
The information provided by the balance sheet statement is more reliable.	This type of statements can't be much reliable and dependable because they are note arithmetic accurate.
The information in the balance sheet statement is complete.	The complete or clear-cut picture off the financial position of a business or a company cannot be given.
The particulars in the balance sheet statement are fully defined and verified.	From this statement the trail balance can't be prepared in single entry system.