Friday, 10 August 2012

Produce a Balance Sheet for the following: A Sole Trader, a Partnership

A Balance Sheet is also known as the statement of financial position. This records all the assets liabilities and ownership equity at a certain period or point in time. 

What goes into a balance sheet

Here are two articles that explains why there are different layouts of financial statements of different types of business.

Here is a video on how to produce a Balance Sheet:

Accounting - Unit 1 - Part 4 - Balance Sheet

Uploaded by  on 8 Jan 2012

There is only a small difference between a sole trader and a partnership balance sheet. You will learn these difference in your study and it will come naturally to you over time. Click on the links above to see the differences.

Balance Sheet for a Sole Trader

Here is a balance sheet of a sole trader

Balance Sheet for a Partnership

A balance Sheet for a Partnership is more or less the same layout as a sole trader. However there are differences between the two types of business.

Here is a link as to what a balance sheet should look like for a partnership. Can you the difference?

In this example we see the partners have both a capital and current account in the balance sheet. The rest of the balance sheet is more or less the same as the sole trader balance sheet.

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