Balance Sheet is a tabular statement of balances carried forward after closing the books of account kept according to principles of accounting.Balance sheet is a statement prepared with a view to measure the financial position of a business on a certain fixed date.Balance sheet indicates the financial position of a concern by its assets on a given date and its liabilities on that date.Excess of assets over liabilities represents capital or net worth or shareholders' fund and is indicative of the financial soundness of a company.