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:

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.
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:

Current Liabilities: Obligations that the firm needs to settle within one year. Examples include accounts payable, short-term debt, etc.
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:

Common Stock: The value of shares issued.
Retained Earnings: Accumulated profits that have not been distributed as dividends.
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 $A sse t s = L iabi l i t i es + Eq u i t y$ .

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