ABSTRACT
Balance-sheets are frequently open to the criticism that they do not give the information they should give, that is, the salient facts of the financial position, and are encumbered with figures which afford a great deal of miscellaneous information of small relative importance which is inappropriate and obstructive in such a condensed form of statement as a Balance-sheet must inevitably be. Historically, the Balance-sheet is a development of the list of balances left on the ledger after making the closing entries. On the other side of the Balance-sheet it is seen that a company has redeemed a substantial amount of its debentures, and the amount outstanding will shortly be still further reduced by the application of the funds in the hands of the trustees. The company appears to be gradually building up a general reserve, and the taxation reserve from its position in the Balance-sheet may be an additional free reserve.
