Balance Sheet - the information it provides

A typical balance sheet would look something like this.

Balance Sheet of M/s Free Flow Fluids as on 30th June 2007
LiabilitiesAmountAssetsAmount
Eq. Share Capital
Pr. Share Capital
Reserves and Surplus
Capital Reserve
General Reserve
Share Premium
Retained Earnings (P/L Appr.)
Other Reserves
Long Term Loans
Fixed Deposits Collected
Debentures
Provisions for Taxation
Provisions for Dividends
Outstanding Expenses
Pre-received Incomes
Unclaimed Dividends
Sundry Creditors
Bills Payable
Bank Overdraft
35,00,000
12,00,000

6,00,000
12,00,000
3,50,000
43,50,000
4,00,000
54,00,000
16,00,000
24,00,000
3,00,000
4,00,000
5,00,000
2,00,000
20,000
13,00,000
12,00,000
5,00,000
Goodwill
Land
Buildings
Plant and Machinery
Furniture and Fittings
Motor Vehicles
Patents, Trade Marks, Copyrights
Investments
Stock of Raw Material
Work in Progress
Finished Goods Stock
Prepaid Expenses
Incomes Receivable
Sundry Debtors
Cash
Bank Balance
Loans and Advances
Bills Receivable
Deferred Revenue Expenditure
Miscellaneous Expenses
Discounts to be written off
Accumulated Loss
(P/L Appr. a/c debit balance)
8,00,000
35,00,000
27,00,000
15,00,000
25,00,000
35,00,000
18,00,000
24,00,000
2,50,000
2,40,000
3,00,000
4,00,000
3,00,000
26,00,000
1,16,000

6,00,000
15,00,000
54,000
1,20,000
2,40,000

2,54,20,0002,54,20,000

A position statement

A Balance sheet is a statement that is prepared at a particular moment. It contains the information relating to the assets and liabilities of an organisation as at that moment. It is called a position statement as it indicates the position of the organisation as that moment.

Statement of Real, Personal, Nominal account balances

In accounting terms, a balance sheet is a statement of balances in ledger accounts after closing the nominal accounts i.e. a statement of Real, Personal and Special Nominal account balances.

Special Nominal Accounts

Nominal accounts whose balances are carried over from one accounting period to another.

Statement of balances carried forward

If the balance sheet is the one drawn on the last day of the accounting period, the balances represent the ledger account balances to be carried forward to the subsequent accounting period.
«Note~1_Topic~1 » n~1 t~2