How to Prepare a Balance Sheet (Example)

Here’s how to prepare a balance sheet, with a simple example.

From the following entries, prepare a balance sheet for KKT corp. Ltd. in terms of current assets, fixed assets, intangible assets, current liabilities, long term liabilities and stockholder’s equity.

Entries -> Amount (Rs.)

Goodwill -> 3,000
Patents -> 2,000
Land -> 30,000
Buildings -> 10,000
Equipment -> 5,000
Notes payable -> 8,000
Bonds payable -> 2,000
Common Stock -> 15,000
Retained Earnings -> 7,000
Cash in Hand -> 7,500
Cash in bank -> 7,500
Accounts payable -> 20,000
Taxes payable -> 3,000

Here’s the balance sheet for KKT corp. Ltd.

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