Balance Sheets - Please help!
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Balance Sheets - Please help!Hi,
Just a quick question about balance sheets.
On a balance sheet which figures do I have to look at to know that my balance sheet is balanced?
For example:
On my balance sheet two items match:
1) 'Total Assets' and..
2)'Total Liabilities & Net Worth' <(Known as closing capital)
Therefore does this mean that by looking at these two figures my balance sheet balances? Or am I looking at the wrong figures?
Thanks! Help much appreciated! -
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Re: Balance Sheets - Please help!That should work, yes.(Original post by Bettypratchit)
Hi,
Just a quick question about balance sheets.
On a balance sheet which figures do I have to look at to know that my balance sheet is balanced?
For example:
On my balance sheet two items match:
1) 'Total Assets' and..
2)'Total Liabilities & Net Worth' <(Known as closing capital)
Therefore does this mean that by looking at these two figures my balance sheet balances? Or am I looking at the wrong figures?
Thanks! Help much appreciated!
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Re: Balance Sheets - Please help!Technically NET ASSETS = CAPITAL (Closing). This being the VERTICAL approach. However under IAS standards for a company we have now reverted back to the HORIZONTAL approach but displaying it VERTICALLY i.e. Assets = Capital + Liabilities rather than Assets - Liabilities = Capital.
The horizontal approach being represented via the account ledgers (T-accounts). Where Assets are on the left (debit) and Liabilities and Capital being on the right (credit).
