Question by  Matt12 (17)

How do you prepare a balance sheet?

My boss wants one ASAP.


Answer by  Freshman (22)

Record all your assets and categorize them as short term and long term. Record all of your liabilities and categorize them as short term and long terms. Next, you take your total assets and subtract your total liabiliites to arrive at what is known as your owner's equity. The equation is assets = liabilities + owners equity


Answer by  indian47 (14)

Balance sheet is prepared from trial balance. From the Trial balance the liabilities are shown in the left side of the balance sheet and assets are posted in the right side. The difference between the two sides shows either profit or loss. The liability side and assets side either liquidity basis or permanent basis.

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