Summarizing and grouping assets and liabilities in monetary value at a specific date is the balance sheet. Its indicators characterize the financial position of the company at the reporting date. Using the balance sheet, the management of the organization and the owner determine the amount of capital that is under his control. The balance also gives an idea of the amount of reserves, material values, the state of settlements and investments.
It is necessary
the form established by the company or the Ministry of Finance
Instructions
Step 1
The balance sheet consists of an asset and a liability. In the asset, the resources of the enterprise are filled, and the sources of their formation are included in the liability. In the balance sheet, the totals of the asset and liability should always be equal.
Step 2
The title part of the balance sheet must contain the name of the company, the reporting date, the taxpayer identification number, the legal address, the main type of activity and the form of ownership.
Step 3
The balance sheet is divided into 5 sections. The asset contains 2 sections: "Non-current assets" and "Current assets". The liability consists of 3 sections: "Capital and reserves", "Long-term liabilities" and "Short-term liabilities".
Step 4
Each asset item reveals the essence of resources, their value and use. Liabilities are sources of education, that is, at the expense of which an asset is created. All balance sheet data at the beginning of the reporting period correspond to the data at the end of the previous period.
Step 5
Line by line, the balance is entered into the balance sheet for all accounts. In practice, the accountant most often opens sub-accounts to separate accounts. Balance sheet items should be filled in based on the data from the General Ledger. Unlike previous standards, now you do not need to indicate the numbers of accounting accounts for which the balance should be transferred to this item. The main task is to group account balances in accordance with the Regulation on accounting.
Step 6
Balance sheet refers to the keeping of accounting records, but modern accounting has gone beyond simple registration. Now accounting is not the records themselves, but the meaning for which they are intended is analysis and interpretation, as well as the establishment of the relationship between actions and financial results. In addition, the balance makes it possible to look for alternative ways of doing business, help the owner in choosing an option for action. Management is always worried about two questions: whether the company will make a profit and whether it is able to fulfill its obligations. The answers to these questions can be seen in the balance sheet.
