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
Liabilities	Amount	Assets	Amount
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 –
	2,54,20,000		2,54,20,000

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.

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