Balance sheet

The Balance Sheet represented all the assets owned by a company at a particular point in time and the claims of the owners and the outsiders against those asset that time.Its also called position statement or statement of wealth since it provides details of assets that company owns and outstanding loans and other claims against the company.

Balance sheet accounts are permanent accounts. They are not closed out at the end of an accounting period but rather, their balances are cumulative. They just keep on accumulating transactions and changing with each transaction.

The line items to be included in the balance sheet are up to the issuing entity, though common practice typically includes some or all of the following items:

Current Assets:

• Cash and cash equivalents
• Trade and other receivables
• Investments
• Inventories
• Assets held for sale

Non-Current Assets:

• Property, plant, and equipment
• Intangible assets
• Goodwill

Current Liabilities:

• Trade and other payables
• Accrued expenses
• Current tax liabilities
• Current portion of loans payable
• Other financial liabilities
• Liabilities held for sale

Non-Current Liabilities:

• Loans payable
• Deferred tax liabilities
• Other non-current liabilities

Equity:

• Capital stock
• Additional paid-in capital
• Retained earnings

Here is an example of a balance sheet:

                                                                            XYZ Corporation

Balance Sheet

	as of 12/31/16	as of 12/31/15
ASSETS
Current assets
Cash and cash equivalents	$135,000	$110,000
Trade receivables	70,000	62,000
Inventories	65,000	58,000
Other current assets	8,000	31,000
Total current assets	278,000	261,000
Non-current assets
Property, plant, and equipment	275,000	260,000
Goodwill	40,000	40,000
Other intangible assets	72,000	70,000
Total non-current assets	387,000	370,000
Total assets	$665,000	$631,000
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables	$105,000	$100,000
Short-term borrowings	50,000	90,000
Current portion of long-term borrowings	7,000	6,000
Current tax payable	21,000	14,000
Accrued expenses	5,000	3,000
Total current liabilities	188,000	213,000
Non-current liabilities
Long-term debt	40,000	35,000
Deferred taxes	29,000	21,000
Total non-current liabilities	69,000	56,000
Total liabilities	257,000	269,000
Shareholders’ Equity
Capital	$150,000	$150,000
Additional paid-in capital	30,000	30,000
Retained earnings	228,000	182,000
Total equity	408,000	362,000
Total  liabilities and equity	$665,000	$631,000