How can prepare Balance sheet?

Answer 1

To prepare a balance sheet, start by gathering all financial information, including assets, liabilities, and equity. List all assets, such as cash, inventory, and property, on one side, and total them up. On the other side, list all liabilities, including loans and Accounts Payable, followed by owner's equity. Ensure that the total assets equal the sum of total liabilities and equity, maintaining the accounting equation: Assets = Liabilities + Equity.