Now we turn to the right side. Starting with the liabilities, you will split these into two categories. You will have the current and long-term liabilities. You will begin with the current liabilities and then list the long-term liabilities.
. These are calculated like the assets. Right after the liabilities, you will list the equity and calculate these the same as the rest. Once you have the totals of the liabilities and equity, you will then add the current liabilities, long-term liabilities and the equity together and list the amount in as the total liabilities and equity.
This total must equal the same as the assets. Now that you have the basic balance sheet format, let’s look at an example of a balance sheet that may be produced by your business. Keep in mind, the items listed on the balance sheet will vary based on the needs of your business.
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