Asked in Business Accounting and BookkeepingAccounts PayableFinancial Statements
How do you prepare a balance sheet in accounting?
February 25, 2011 8:52PM
A basic balance sheet is formatted beginning with Assets (current first then non-current) Liabilities (Current first then long-term) and Owner (shareholders) Equity. The account amounts are taken from the General Ledger after all temporary accounts are closed at the end of the fiscal year. Temporary accounts are Expenses and Revenue accounts which are closed into income summary and then finally retained earnings (or Statement of Retained Earnings which is an O.E. account)