A Balance Sheet
is a key reporting of your business
Financial position showing what its Assets and Liabilities are
and what equity remains in the business entity as at the
moment for which the Balance sheet is is prepared.
Armed with this information you
are better able to make business
decisions based on the numbers you see and the potential there may
be for improvement in the various areas involved.
This sort of an accounting report is easily generated on your personal
computer provided you are willing to maintain it with current information
of your business transactions. Its certainly cheaper than using a
book-keeper or accountant and will ensure you are able to keep up
with the changes in your business cycle - as they evolve.
Industry formulas are applied by banks and other interested
parties to determine if you are functioning with adequate liquidity
and equity.
| Mom & Pop TV & Stereo Limited | |||
| Balance Sheet as at date noted | |||
| Assets | |||
| Current assets | |||
| Term Deposit Instruments | $80,000.00 | ||
| Accounts Receivable | $1,500.00 | ||
| Inventory | $160,000.00 | ||
| Total current assets | $241,500.00 | ||
| Fixed assets | |||
| Fixtures and Equipment | $8,000.00 | ||
| Total Assets | $249,500.00 | ||
| Liabilities | |||
| Short term | |||
| Bank Operating Line | $6,000.00 | ||
| Accounts Payable | $17,000.00 | ||
| Total short term liabilities | $23,000.00 | ||
| Long term | |||
| Notes payable | $10,000.00 | ||
| Total Liabilities | $33,000.00 | ||
| Shareholders equity | |||
| Issues Shares | $100.00 | ||
| Retained earnings | $216,400.00 | ||
| Total shareholder equity | $216,500.00 | ||