In my previous post, I wrote about understanding the balance sheet. Balance sheet shows the financial condition of a particular business entity. Reading and understanding balance sheet is very important for short-term and long-term analysis. This statement is the ultimate financial statement since income statement’s net profit is forwarded and closed in the retained earnings (which is shown in the equity section of the balance sheet); cash flow statement is netted to cash and reported as current asset in the asset section of the balance sheet; and the equity in the statement of changes in equity is also forwarded as equity in the balance sheet.

Understanding and reading the balance sheet can be very useful. But how about preparing it? If you don’t have an accountant and you rather do the accounting works of your business, then you might need a sample balance sheet to give you a guide and an idea of a balance sheet.

Here are sample balance sheets for your references. Please click here to access PDF file showing samples of balance sheet.

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