How To Make Balance Sheet

by Kimberly Echavia
(Philippines)

How To Make Balance Sheet

How To Make Balance Sheet

I am confused as to how to make a balance sheet. Will you please provide more information on what I should do?

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Dec 10, 2017
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by: Stephanie

Thank you for your balance sheet question about how to make a balance sheet. The balance sheet must balance via the equation Assets = Liabilities + Owner's Equity and is made up of these three sections.

Under assets you will list all the resources that are owned, such as bank accounts, assets like furniture, equipment, vehicles and inventory.

The liabilities will list all the debts of the company such as Accounts Payable and loans.

While Owner's Equity will list the contributions and distributions of owners as well as the past earnings.

To start, make a header that says:

Balance Sheet
Name of Company
Date of Balance Sheet

Next list all the assets and total them together and double foot the total. Then list all of the liabilities and total them together, and list all of the Owner's Equity accounts and total those together.

Finally, add the total liabilities and owner's equity numbers together and double foot it. Both the double footed totals should match which means your balance sheet is in balance.

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