How to fill in the balance sheet balance at the beginning of the year

Mondo Finance Updated on 2024-01-29

The balance sheet is one of the most important financial statements in the accounting statements of a business, which is used to reflect the financial status and financial activities of a business. Among them, the balance sheet at the beginning of the year refers to the financial status and assets and liabilities of the enterprise at the beginning of a certain year, which needs to be filled in carefully.

The balance at the beginning of the balance sheet is filled in as follows:

1.Asset class account: The balance at the beginning of the current year is obtained based on the closing balance in the balance sheet at the end of the previous year, plus the new assets added in the current year, and subtracting the reduced assets in the current year.

2.Liabilities account: The balance at the beginning of the current year is obtained by adding the new liabilities of the current year and subtracting the reduced liabilities of the current year based on the closing balance in the balance sheet at the end of the previous year.

It is important to note that when filling in the balance sheet balance at the beginning of the year, you need to ensure that the beginning of the balance of all accounts is the same as the ending balance at the end of the previous year, and the amount of the borrower is equal. If you find that the amount of the borrower is not equal, you need to check whether the balance of the account is wrong or there is an open transaction.

At the same time, when filling in the balance sheet balance at the beginning of the year, you also need to pay attention to the following points:

1.The debit side of an asset class account indicates an increase and the credit side indicates a decrease, while the debit side of a liability account indicates a decrease and the credit side indicates an increase. Therefore, when filling in the balance at the beginning of the year, it is necessary to correctly fill in the amount of the debit according to the nature of the account.

2.If the closing balance at the end of the previous year is zero or negative, you need to adjust it according to the actual situation to ensure the accuracy of the balance at the beginning of the year.

3.When filling out the balance sheet, it is also necessary to pay attention to the order and format of each item to ensure the completeness and aesthetics of the statement.

In short, the filling of the balance at the beginning of the balance sheet needs to carefully check the closing balance at the end of the previous year and the increase and decrease of the current year to ensure the accuracy and completeness of the statement.

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