Skip to content

Balance sheet

August 5, 2009

Balance sheet:

In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and Ownership equity for an organization or individual on a specific date, such as the end of its financial year. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time, instead of a period of time.

Types of balance sheets:
A balance sheet summarizes an organization or individual’s asset, equity and liabilities at a specific point in time. Individuals and small businesses tend to have simple balance sheets.Larger businesses tend to have more complex balance sheets, and these are presented in the organization’s annual report.Large businesses also may prepare balance sheets for segments of their businesses.

Personal balance sheet:
A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due or overdue, and long-term liabilities such as mortgage and other loan debt.

Small business balance sheet:
A small business balance sheet lists current assets such as cash, accounts receivable, and inventory, fixed assets such as land, buildings, and equipment, intangible assets such as patents, and liabilities such as accounts payable, accrued expenses, and long-term debt.
Sample Small Business Balance Sheet


Liabilities and Owners’ Equity


$ 16,600


Accounts Receivable


Notes Payable




Accounts Payable




Total liabilities


Tools and equipment


Owners’ equity

Capital Stock

$ 80,000

Retained Earnings


Total owners’ equity





No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: