How To Prepare A Balance Sheet?

A balance sheet is a summary of a firm's assets, liabilities and net worth. The key to understanding a balance sheet is the simple formula:

Assets = Liabilities + Net Worth

All balance sheets follow the same format: If it is in two columns, assets are on the left, liabilities are on the right, and net worth is beneath liabilities. If it is in one column, assets are listed first, followed by liabilities and net worth.

Here is a sample balance sheet:
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Source:
Numia Balance Sheet