Balance Sheet | How to make Balance Sheet with Example
Balance Sheet | How to make Balance Sheet with Example INDEX of this Post [ hide ] What is a Balance Sheet? A balance sheet is a statement of the assets, liabilities, and equity of a business or other organization at a particular point in time. A balance sheet can also be described as a snapshot of a company's financial condition. A balance sheet is broken up into 3 sections. Assets, liabilities, and equity. The difference between the assets and the liabilities is the equity of the company also known as net assets, net worth, or capital. So, you're starting a business. You go to the bank and get a loan. On your balance sheet, this loan shows as a liability as it has to be repaid to the bank. It also shows as an asset for the same amount as you have the cash to spend. Thus the balance sheet is balanced. You need to buy a computer for your new business. The cash in your assets decreases but your new computer asset helps balance this. As you sell to your customers your pro...