Accounting Demystified

Balance Sheet

The Balance Sheet lists the assets, liabilities, and equity accounts of the company. The Balance Sheet is prepared ''as on'' a particular day, and the accounts reflect the balances that existed at the close of business on that day. The Balance Sheet is prepared on the last day that the Income Statement covers, so if the Income Statement is for the period ending December 31, 2002, the Balance Sheet would be as on December 31, 2002. You can state the date in a variety of formats. All of the following are acceptable:

As on December 31, 2002   December 31, 2002 On December 31, 2002

The following are typical accounts that are classified as assets, liabilities, and equity accounts. (These accounts are defined later on in the book. There ...