Financial accounts are based on the information stored in the Balance Sheet
Information obtained from the Trial Balance.
Balance Sheet
A balance sheet is a company’s financial statement that provides information about a company’s assets, finances as well as the amount invested by its owners
The financial status of what the company owns (assets) and what the company owes (Liabilities)
Balance sheet format
Assets
Fixed Assets ( Property, Plant & Machinery, Vehicles)
Current Assets
Cash at the bank
Debtors ( accounts receivable)
Stock
Prepayments
Accrued income
Liabilities
Trade Creditors (accounts payable)
Bank
Accruals
Tax
Long term Liabilities
Loans
Represented by
Capital
Share Capital
Net Profit
Noted A Balance sheet is primarily used by investors, executives, analyst and regulators to understand the current financial health of any business. Usually used alongside two major financial statements the Profit and Loss Statement and the Cash flow statement. The balance of Assets less liabilities should always equal the balance of items represented.