In this lesson, we discussing Balance Sheet its Items, as it is considered as a snapshot of the company and give us the idea about the financial position of the business and tell the company what they own and owes.
The balance sheet is the list of assets and claims of business prepared at some specific point in time. It shows financial position of the business sheet. A balance sheet shows the assets and liabilities grouped, properly classified and arranged in a specific manner. It normally prepared at the close of each financial year.
Balance Sheet its Items and Format + Examples
let us talk about the Balance Sheet its Items and Format
It contains 2 columns
- Assets side
- Liabilities and owner’s equity side
- Currents assets (cash, debtors prepaid exp. Etc)
- Non-current assets (patent right, goodwill, trademarks etc)
- Fixed assets (land building, machinery etc)
Liabilities and owner equity side
- Short term (overdraft bank loan, accrued exp.)
- Long-term (mortgage loan)
Amount invested by the owner of the business.