Results are out! Find what you need...fast. Get quick advice or join the chat
Hey! Sign in to get help with your study questionsNew here? Join for free to post

Balance Sheets - Please help!

Announcements Posted on
For applicants, undergrads and postgrads: Find out what's happening during Student Money Week here 05-02-2016
Are postgrad degrees a waste of time? Have your say and be in with a chance of winning a £30 Amazon voucher 29-01-2016
  1. Offline

    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!
  2. Offline

    ReputationRep:
    (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!
    That should work, yes. :yy:
  3. Offline

    ReputationRep:
    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).

Reply

Submit reply

Register

Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: April 3, 2012
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Today on TSR

Dropping out of Oxford

Find out what it's like in Ethereal World's blog

Poll
How much money do you spend a week at uni?
Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.