How To Check The Balance Sheet

Table of contents:

How To Check The Balance Sheet
How To Check The Balance Sheet

Video: How To Check The Balance Sheet

Video: How To Check The Balance Sheet
Video: How To Analyze a Balance Sheet 2024, March
Anonim

The balance sheet of the company is a summary table compiled on the basis of accounting data and confirming the fact of economic activity. This document is very important for the organization, since an error in it can lead to confusion in calculations, incorrect operations, the imposition of penalties by the regulatory authorities, which ultimately leads to losses and losses. Thus, it is necessary to carefully check the balance sheet for the correctness of drawing up and documenting.

How to check the balance sheet
How to check the balance sheet

Instructions

Step 1

Start by checking the basic rules for compiling the balance sheet. The results of the balance and turnover on credit and debit must match, be accurate and reasonable both for reporting as a whole and for each account and subaccount separately.

Step 2

Please note that at the beginning of the year, the balances of all accounts must correspond to the indicators of the balance sheet at the end of last year.

Step 3

Eliminate the formation of a minus or credit value on the balance of active and property accounts, as well as the formation of a minus or debit value on the balance of passive accounts. On balance accounts 90, 91 and 99, the balance must be absent at the beginning and end of the reporting code.

Step 4

Confirm with the inventory data the balances at the end of the reporting income on the assets and liabilities accounts for property, settlements, liability, counterparties, and so on.

Step 5

Check the consistency and consistency of the balances and turnovers of the related accounts. For example, make a calculation that will confirm that the turnover on account 90.3 "VAT" corresponds to the turnover on account 90.1 "Revenue". This can be determined by multiplying the score for account 90.1 by the corresponding VAT rate. As a result, you get a value equal to the score 90.3. Carry out similar supporting calculations for other related accounts.

Step 6

Read clause 34 of PBU 4/99, which states that it is impossible to offset in the financial statements between items of liabilities and assets, losses and profits, except for the cases when it is spelled out in the relevant accounting regulation. Based on this rule, the balance of obligations in the statement should be shown “gross”, ie. without summation. In other words, the existing debit balance is reflected in the corresponding item of the balance sheet asset, and the credit balance is reflected in the liability item. It is possible to reflect the netted amount if the entity has deferred tax assets and liabilities that are taken into account in determining income tax.

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