Balance Sheet Example

The Balance Sheet shows a picture of the assets, liabilities and equity (net worth) of a business as of a specific day. The Balance Sheet shows two views of the business -- what resources you own (Assets) and the credit or investment that made it possible to acquire these resources (Liabilities and Equity).

The basic equation of a Balance Sheet is Assets = Liabilities + Equity. In other words, what you own equals what you owe plus what the business is worth.

The following example shows some of the common elements of the Balance Sheet.

Sample Company
Balance Sheet
For Period Ending December 31, xxxx
Checking Account 1,256.00  
Savings Account 8,600.00  
Petty Cash 100.00  
Total Cash   9,956.00
Other Assets    
Vehicles 11,385.00  
Buildings 50,483.25  
Equipment 43,249.04  
Furnishings 13,317.67  
Stocks & Bonds 16,588.00  
Total Other Assets   135,022.96
Total Assets   144,978.96
Bank Line of Credit 35,000.00  
Mortgages Due 45,554.00  
Total Liabilities   80,554.00
Owner's Equity 64,424.96  
Total Equity   64,424.96
Total Liabilities and Equity   144,978.96