Balance Sheet

Whenever we talk about Balance Sheet, always remember the following 3 things:

1. Asset
2. Liabilities
3. Capital

Balance Sheet is a list of asset, liabilities and capital balances sorted and organized in a specific format. The standard format of Balance sheet is as follow:

Assets
Stock xxxx
Debtor xxxx
Bank xxxx
Cash xxxx
xxxxxx

Less Liabilities
Creditor (xxxx)
xxxxxx

Capital xxxx


Please note that Balance Sheet is not part of double entry system. Why ? There is not Account word associated with Balance Sheet. Balance Sheet is not part of double entry system. Therefore, nothing is entered into ledger accounts.