Accounting Corner

Explore Accounting & Finance

Balance Sheet Template




What is a Balance Sheet Template?

A balance sheet template is a standardized format used to present the financial position of an organization at a specific point in time. It’s an essential financial statement that provides a snapshot of what a company owns (assets), what it owes (liabilities), and the residual interest in the assets after liabilities are deducted (equity).

The balance sheet is built around the fundamental equation:

Assets=Liabilities+Equity

This equation must always hold true, meaning the balance sheet must always “balance.”

How It Should Look Like

A balance sheet is generally divided into two sides or sections. On the left-hand side (or the top section in some formats), you have the Assets. On the right-hand side (or the bottom section), you have Liabilities and Equity.

What Must Be Included

Assets

Assets are usually categorized as:

  1. Current Assets: Items that are either in cash or can be quickly converted to cash within one year. Examples include cash, accounts receivable, inventory, etc.
  2. Non-Current Assets: Assets that will not be converted into cash within one year. Examples include property, plant, equipment, and long-term investments.

Liabilities

Liabilities are categorized as:

  1. Current Liabilities: Obligations that the firm needs to settle within one year. Examples include accounts payable, short-term debt, etc.
  2. Non-Current Liabilities: Obligations that the firm will settle over a period longer than one year. Examples include long-term debt, deferred tax liabilities, etc.

Equity

Equity represents the ownership interest in the firm and includes:

  1. Common Stock: The value of shares issued.
  2. Retained Earnings: Accumulated profits that have not been distributed as dividends.
  3. Additional Paid-In Capital: Capital paid in by shareholders over the par value of the stock.

Here’s an example balance sheet:

XYZ Corporation
Balance Sheet
As of December 31, 2023

Assets

  • Current Assets:
    • Cash: $10,000
    • Accounts Receivable: $15,000
    • Inventory: $20,000
    • Total Current Assets: $45,000
  • Non-Current Assets:
    • Property, Plant & Equipment: $100,000
    • Long-term Investments: $20,000
    • Total Non-Current Assets: $120,000
  • Total Assets: $165,000

Liabilities

  • Current Liabilities:
    • Accounts Payable: $5,000
    • Short-term Loans: $10,000
    • Total Current Liabilities: $15,000
  • Non-Current Liabilities:
    • Long-term Debt: $40,000
    • Total Non-Current Liabilities: $40,000
  • Total Liabilities: $55,000

Equity

  • Common Stock: $50,000
  • Retained Earnings: $50,000
  • Additional Paid-In Capital: $10,000
  • Total Equity: $110,000

In this example, you can see that the total assets of $165,000 are equal to the sum of total liabilities ($55,000) and total equity ($110,000), thus fulfilling the fundamental equation .

Blank Balance Sheet Template

here’s a blank balance sheet template in a text-based table format that you can use. It’s formatted in a way that should allow for easy copying and pasting into most text editors, including WordPress.
Company Name Balance Sheet
As of [Date]
ASSETS
Current Assets
– Cash
– Accounts Receivable
– Inventory
– [Other Current Assets]
Total Current Assets
Non-Current Assets
– Property, Plant & Equipment
– Long-term Investments
– [Other Non-Current Assets]
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
– Accounts Payable
– Short-term Loans
– [Other Current Liabilities]
Total Current Liabilities
Non-Current Liabilities
– Long-term Debt
– [Other Non-Current Liabilities]
Total Non-Current Liabilities
Total Liabilities
EQUITY
– Common Stock
– Retained Earnings
– Additional Paid-In Capital
Total Equity
TOTAL LIABILITIES AND EQUITY

Feel free to replace the placeholders with the actual figures to complete the balance sheet.

All Balance Sheet Related Topics to Explore:

 

The Most Popular Accounting & Finance Topics:

Return from Balance Sheet Template to AccountingCorner.org

Liked this post? Share it!