1) Why should balance sheet tally?
People usually answer that the double entry system is the reason why balance sheet should tally, but that’s not the reason. Think about it, the amount you bring into the business (be it equity or external funds), is the amount you put into the business and hence the balance sheet should tally, as that’s the natural way to go about it. The question is how do you make it tally, that question is answered by dual entry accounting system. So, balance sheet should tally as that is the natural way to go about it, not because of dual entry system
