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Model Balance Sheet

Simple Alliance, Kenya Limited


Balance Sheet

Also referred to as a statement of your business’ financial position, the balance sheet shows a summary your liabilities, assets, and owner’ equity. By examining the above three elements, you get an idea of what your business owes, what it owns, plus the monetary value of your investment.  Basically, the balance sheet represents a snapshot of your business’ monetary situation at a specific point.

Assets

 Assets denote the fiscal means by which you operate your business. The sum of your liabilities and equity figures need to be equal to the assets sum. Your asset portfolio constitutes various accounts such as inventory, property, and cash.   

Assets = Owner’s Equity + Liabilities

Asset Categories

Your assets fall into two main groups, namely fixed and current.

Fixed Assets

Fixed assets are the possessions that you cannot easily convert in to cash. They include items such as:

  • Equipment
  • Property
  • Production plants
Current Assets 

These are the assets items that have more liquidity. They include:

  • Inventory
  • Cash
  • Prepaid costs
  • Accounts receivable

Owner’s Equity

Equity represents your business’ net assets. Owner’s equity and liabilities are the sources of these assets. Equity encompasses the cash amount that you invest in your business as well as retained earnings.

Liabilities

The accounts that fall within your liabilities portfolio include long-term debt, unearned revenue, and accounts payable.   

Model Balance Sheet

The attached MS Excel file contains a balance sheet template that you could use to prepare a balance sheet. You just need to key in the different items. You will then automatically get a summary of the totals and subtotals. The figures will determine whether your balance sheet balances.     

File Contents

The attached file has a MS Excel spread sheet template. The spread sheet is of version 4.0 and above.  

Special Features

You will note that the provided balance sheet template is designed for sole proprietorship type of businesses. The good thing is that depending on your type of business, partnership, corporation, or sole proprietorship, you can appropriately modify the provided template. If need be, you could change the format, introduce new account titles, or delete other titles. Further, once you download and save the template, you will use it over and over without having to do another download.     

 Attachments

 

Balance Sheet Template

 

The balance sheet is a basic financial statement that lists your small business’ liabilities and assets. It also shows your equity figure.  This financial statement then computes the financial worth of the business. The foregoing balance sheet template resource is a welcome tool to you as a business owner. It simplifies financial reporting in that you just need to download it and save it to your computer. You then key in the relevant asset and liability items into the template. The resource then automatically calculates the present liability and assets totals and subtotals. you also get to know your business’ fiscal worth based on the owner’s equity figure which you get after deducting your total liabilities from your total assets figure.

Copyright (C) 2016, Simple Alliance Kenya Limited

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