PREPARE AND

MAINTAIN FINANCIAL
RECORDS AND REPORTS
OF THE BUSINESS
ENTREPRENEURSHIP 10
 OBJECTIVE:
At the end of the period the students will be
able to:
 Discuss and describe a balance
sheet report.
 Prepare a balance sheet report
 Balance Sheet
o It is a formal statement showing
the financial position of the
enterprise as of a particular date.
o It shows the composition of the
property of the business, its debts to
outsiders and the equity of the
owner/s
 Balance Sheet
It answers the questions:
o How much property does the
business own?
o How much does the business owe to
outsiders?
o How much is the owner or owners
worth?
 Balance Sheet
It also called:
o Statement of Assets and Liabilities

o Statement of Financial Condition

 Parts of the
Balance Sheet
1. Heading
a. Name of the
business
b. name of the form
c. date of the
statement
2. Body-composed of 2
divisions: one contains
the assets and the
other contains the
liabilities and
proprietorship
To illustrate a Balance Sheet

Assume that Mr. Chit Manlunas has the

following information in his journal as of
December 31, 2018:
1. Total cash 5,235

2. Receivable from
customer 750

3. Delivery equipment for

business 16,500

4. Table, chairs and other

fixtures 1,950

5. Payable to Cyrex
Commercial 250

6. Initial Capital of 22,000

decrease by personal
withdrawal of 1,000

7. Profit for the month 3,185