The source of information about the financial and property status of the organization is the balance sheet, which consists of assets and liabilities. The asset reflects the property belonging to the enterprise: cash, fixed assets, stocks, etc. The liabilities reflect data on the sources of assets formation: external liabilities, equity capital, borrowed funds, etc.
It is necessary
Turnover balance sheet and previous balance sheet
Instructions
Step 1
The balance sheet always reflects reliable and complete information, therefore, before starting to draw up the balance sheet, it is necessary to reform the balance sheet, take an inventory of the organization's liabilities and property. And also check whether the turnovers are correctly reflected in the analytical and synthetic accounting, whether all business transactions are reflected. The balance at the beginning of the period is filled in accordance with the account balances that were formed at the end of the previous period.
Step 2
Indicators at the beginning and end of the period should be comparable. In the event that there have been changes in legislation over the past period or the accounting policy of the company, discrepancies may arise. Then it is necessary to correct the data at the beginning of the period, based on the conditions that came into force in the current year.
Step 3
The balance shows changes in the property status of the organization over a period of time. In order to draw up a balance sheet, it is necessary to determine whether to separate short-term and long-term assets and liabilities as a separate classification in the balance sheet itself. Separate classification will separate the constantly circulating net assets from the long-term assets of the organization. Data on the maturity of liabilities and assets will make it possible to assess the liquidity and solvency of the enterprise.
Step 4
Before drawing up the balance sheet, it is necessary to make trial balances at the beginning of the period, based on the balance sheet. Then make adjustments, bring all accounts in line with financial reporting standards. Linear balance sheet items are formed as a result of processing a variety of business transactions that are combined into groups by nature and function. Each item is presented separately, insignificant amounts are combined with similar amounts and are not included in the balance sheet separately. The order and title of articles may vary in accordance with the specifics of the company's business operations and the nature of the activity. Notes should be made to the balance sheet, which disclose the subclasses of each line item.
