THE BALANCE SHEET

also known as the Statement of Financial Position

3 ELEMENTS
Assets Liabilities

Equity

FORMS OF PRESENTING
REPORT FORM All major sections are in a downward sequence ACCOUNT FORM Assets are shown on the left side Liabilities and Equity are shown on the right side

SAMPLE CORPORATION Statement of Financial Position December 31, 2010

ASSETS Note Current Assets Cash and Cash Equivalents Trading Securities Trade and Other Receivables Inventories Prepaid Expenses Total Current Assets (1) (2) (3) (4) 500,000 200,000 700,000 900,000 50,000 2,350,000

Non-Current Assets Property, Plant & Equipment Long-Term Investments Intangible Assets Other Non-Current Assets Total Current Assets Total Assets

(5) (6) (7) (8)

5,000,000 6,100,000 2,000,000 100,000 1,300,000 15,500,000

LIABILITIES AND SHAREHOLDERS EQUITY

Current Liabilities Trade and Other Liabilities (9) Notes payable short term Current portion of bonds payable Total Current Liabilities Noncurrent Liabilities Bonds payable remaining portion Notes payable July 11, 2013 Deferred Tax liability Total noncurrent liabilities Shareholders equity Share capital, P100 par Reserves Retained Earnings Total Shareholders equity

750,000 400,000 250,000 1,400,000

1,800,000 600,000 100,000 2,500,000

(10)

5,000,000 3,000,000 3,650,000 11,650,000

Total Liabilities and shareholders equity

SAMPLE CORPORATION Statement of Financial Position December 31, 2010

LIABILITIES AND SHAREHOLDERS EQUITY

ASSETS Note Current Assets Cash and Cash Equivalents Trading Securities Trade and Other Receivables Inventories Prepaid Expenses Total Current Assets Non-Current Assets Property, Plant & Equipment Long-Term Investments Intangible Assets Other Non-Current Assets Total Current Assets (1) (2) (3) (4) 500,000 200,000 700,000 900,000 50,000 2,350,000

Current Liabilities Trade and Other Liabilities (9) Notes payable short term Current portion of bonds payable Total Current Liabilities Noncurrent Liabilities Bonds payable remaining portion Notes payable July 11, 2013 Deferred Tax liability Total noncurrent liabilities Shareholders equity Share capital, P100 par Reserves Retained Earnings Total Shareholders equity

750,000 400,000 250,000 1,400,000

(5) (6) (8)

5,000,000 6,100,000 (7) 100,000 1,300,000 2,000,000

1,800,000 600,000 100,000 2,500,000

(10)

5,000,000 3,000,000 3,650,000 11,650,000

Total Assets

15,500,000

Total Liabilities and shareholders equity

ASSETS
Assets are resources controlled by the entity as a result of past transactions and events and from which future economic benefits are expected to flow to the entity

Classifications: Current Assets and Noncurrent Assets

Current Assets Cash and Cash Equivalents Marketable Securities Trade and Other Receivables Inventories Prepaid Expenses

Presented as LINE ITEMS in the Balance Sheet

Non-Current Assets Property, Plant and Equipment Long-term Investments Intangibles Other Non-current Assets
Presented as LINE ITEMS in the Balance Sheet

LIABILITIES
Present obligations of an entity arising from past transactions or events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

LIABILITIES
Current Liabilities Non-Current Liabilities

Trade and Other Receivables Short Term Borrowings Current Portion of a Long-term Debt Current Tax Liability

Non-current Portion of Long-Term Debt Deferred Tax Liabilities Long-Term Obligations to Company Officers

EQUITY
Residual interest of Assets of the entity after deducting Liabilities from the Assets It is increased by profitable operations and contribution by owners It is decreased by unprofitable operation and distribution to owners.

Thank you!

Cash
Coins and currency

Petty cash

Certified checks

Cashiers checks Amounts on deposit with financial institutions

Money orders

Cash Equivalent

Items very near cash but not in negotiable form

Money market funds

Commercial paper

Treasury bills

Intangibles
Goodwill

Franchise
Copyright Patent

Property, Plant and Equipments

Land

Buildings Office Equipments

Machineries