Alignment of Assets and Liabilities in the Balance Sheet
Being an Indian student in finance I have always been taught since my school days that in the Balance Sheet of any organsiation whatsoever, Liabilities and Equity (Capital) must be recorded on the Left hand side whereas the Assets must be recorded on the Right hand side of the Balance Sheet. But in this course what is being taught is completely different. Please give a clarification on this issue I am facing and let me know what should I follow from now on.
Hi Adarsh,
In western countries, it is the other way around. So far, many students from India have shared your feedback, but we have prepared the materials based on on western standards. I understand your confusion though. Apologies for that.
Best,
Ned
Hey Ned,
Thanks for your response. I understand that the courses have been prepared based on practices followed in western countries. But another doubt which arises in my mind which I want you to please clear is that does that make much of a difference while applying the learnings in real world or not or is it just a alignment thing which is very minor?