The Balance Sheet

by David Bazile
(Manhattan )

From Ask the Expert:


Hello Kate! When creating the balance sheet for the prior year, how do you calculate the assets when all you have is bank statements, the tax return of that year and receipts?

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Hi David!

Good question!

To set up a quick Balance Sheet, you know you have cash, which is an Asset. If the business is strictly on a cash basis, and there are no loans on the books, your corresponding credit to offset your Checking Account balance (a debit) will be an equity account - like Owners Equity. That's if the biz is a sole proprietorship (one owner not incorporated).

If it's a corporation, you will have Common Stock and Retained Earnings.

Does that help?

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Aug 01, 2013
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yes again
by: Kathy

Yes.

List your assets - Checking Account.

List your Liabilities - Accounts Payable (bills due) or any small loans due in less than 1 year, etc.

List your Equity - Owner's Equity or for a corporation, Common Stock and Retained Earnings.

And, remember, your Assets = Liabilities + Equity.

Jul 31, 2013
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in answer
by: Kathy

Yes!

Current Liabilities list on the Balance Sheet. Use the Equity section for the difference.


Jul 29, 2013
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Balance sheet
by: David Bazile

Thanks for your input again. So if the business has no loans but has current liabilities, I can just list that under liabilities?

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