Maintaining accounting records for a business entity involves filling out certain reporting forms for certain dates. The balance sheet occupies a special place in the financial statements, to which many regulatory and other bodies assign a leading role. Therefore, it is important to know how to fill out a balance sheet and which accounts go where.
The balance sheet is one of the financial reporting forms. The legislation establishes that all legal entities, regardless of their organizational form and the applicable taxation regime, must prepare and submit reports to tax and statistical authorities.
This obligation also applies to non-profit organizations and bar associations. Balance sheets and profit and loss statements do not have to be submitted only to entrepreneurs, as well as branches of foreign companies. But they can do this on their own initiative.
Attention! Previously, some organizations were exempt from preparing a balance sheet, but currently such provisions are no longer in effect. Business entities classified as small businesses are given the right to submit reports in a simplified form. It includes a balance sheet in form 1 and, therefore, enterprises must send it to the regulatory authorities.
Balance due dates
According to the general rules, the balance sheet - Form 1 must be submitted as part of the reporting for the past year no later than March 31 of the following year. This deadline must be observed when submitting balance sheets and other forms to the Federal Tax Service and statistics.
In addition, under certain conditions, an audit report must be sent to Rosstat as an attachment. The deadline is set for ten days, but no later than December 31 of the following year.
Some organizations need to submit financial statements and publish them due to the type of activity they carry out, or according to other criteria defined by law. For example, tour operators must send their reports to Rostrud within three months from the date of their approval.
The legislation provides for separate deadlines for organizations that registered after September 30 of the reporting year. Due to the fact that their calendar year may be determined differently in this case, the due date may be set by such organizations on March 31 of the second year after the current one. For example, Rebus LLC received an extract from the Unified State Register of Legal Entities on October 25, 2017; the accounting report must be submitted for the first time on March 31, 2019.
Attention! Accounting statements are usually submitted based on the total for the year. However, it is possible to present it quarterly. In this case it is called intermediate. Such documentation is very often needed when applying for loans from banks, company owners, etc.
Where is it provided?
The provisions of federal laws establish that Form 1 balance sheet and Form 2 profit and loss statement, and in certain cases other forms, must be submitted:
- Federal Tax Service - reporting must be submitted at the place of registration of the company. Therefore, branches and other separate divisions do not submit it, and only the parent company submits consolidated statements. This must be done at the place where it is registered, taking into account these departments.
- Rosstat - currently submitting reports to statistical authorities is mandatory. If this is not done, then, just as in the first case, the company and officials may be held liable.
- For the founders and other owners of the company - this is due to the fact that each annual report of the organization must be approved by its owners.
- To other bodies, if the relevant regulations define such a duty.
Attention! Banks may be asked to provide reporting when applying for various types of loans and borrowings from them. Especially if it is taken.
Currently, when concluding contracts, many large companies ask for Form 1 Balance Sheet, Form 2 Profit and Loss Statement. This should be done at the discretion of the company management.
However, at present, many specialized companies through which you can submit reports have a service that allows you to obtain all the necessary information about a partner according to his TIN or OGRN. This data is provided by the Federal Tax Service itself based on previously submitted reports.
After this, his TIN is indicated on the next line in the table. Next, you need to indicate the main type of activity - first in words, and then in a table using the OKVED2 code. Then the organizational form and form of ownership are indicated.
On the contrary, the corresponding codes are entered in the table, for example:
- The code for LLC is 65.
- for private property - 16.
On the next line you need to choose in what units the data in the balance sheet is presented - in thousands or millions. The table displays the required OKEI code. The last line contains the address of the subject's location.
Assets
Fixed assets
Line “Intangible assets” 1110 - account balance 04 (except for R&D work) minus account balance 05.
Line “Research results” 1120 - account balance 04 for sub-accounts that reflect R&D;
Line “Intangible search queries” 1130 - balance, subaccount of intangible costs for search work.
Line “Material search requests” 1140 – account balance 08, subaccount for the costs of material assets for search work.
Line “Fixed assets” 1150 - balance minus the balance.
Line “Income-bearing investments in MC” 1160 - the balance minus the balance of account 02 in terms of accrued depreciation on assets related to income-generating investments.
Line “Financial investments” 1170 - account balance 58 minus account balance 59, as well as account balance 73 in terms of interest-bearing loans over 12 months.
Line “Deferred tax assets” 1180 - account balance 09, it is possible to reduce it by account balance 77.
Line “Other non-current assets” 1190 - other indicators that need to be reflected in the section, but they are not included in any line.
The line “Total for section” 1100 is the sum of lines from 1110 to 1190.
Current assets
Line “Inventories” 1210 - the sum of indicators is entered in the line:
- account balance 10 minus account balance 14, or account balances 15, 16
- Balances on production accounts: 20, 21, 23, 29, 44, 46
- Balances of goods on accounts 41 (minus the balance on account 42), 43
- account balance is 45.
Line “Value added tax” 1220 - account balance 19.
Line “Accounts receivable” 1230 - the sum of indicators is entered:
- Debit balances and 76 minus the credit balance of account 63 for the subaccount “Reserves for long-term debts”;
- Debit balance on advances made for the supply of products and services.
- Debit balance, subaccount “Insurance settlements”;
- The debit balance of the account is 73, excluding the amounts of loans on which interest is accrued;
- Debit balance of account 58, subaccount “Granted loans for which interest is not accrued.”
- Debit account balance 75;
- Debit account balance 68, 69
- The debit balance of the account is 71.
Drawing up a balance sheet is essentially transferring the balances of the accounting accounts to the lines provided for them. Therefore, to correctly draw up a balance sheet, you need not only to keep accounting records correctly and in full, but also to know which accounting accounts are reflected in which line of the balance sheet.
During the consultation, we will provide a breakdown of all the lines of the balance sheet. In this case, we will detail the balance sheet lines according to the most typical accounts, which are reflected on such lines. After all, the procedure for drawing up financial statements in general and the balance sheet in particular, as well as the reflection of certain indicators, is influenced by the characteristics of the organization’s activities and its activities.
By the way, we showed how to draw up a balance sheet in a separate example. And we talked about the content and structure of the balance sheet in another. Let us remind you that the current form of the balance sheet submitted to the tax inspectorate and statistical authorities was approved by Order of the Ministry of Finance dated July 2, 2010 No. 66n.
Explanation of balance sheet asset lines
Indicator name | Code | Algorithm for calculating the indicator | |
---|---|---|---|
Intangible assets | 1110 | 04 “Intangible assets”, 05 “Amortization of intangible assets” | D04 (excluding R&D expenses) - K05 |
Research and development results | 1120 | 04 | D04 (in terms of R&D expenses) |
Intangible search assets | 1130 | 08 “Investments in non-current assets”, 05 | D08 - K05 (all regarding intangible exploration assets) |
Material prospecting assets | 1140 | 08, 02 “Depreciation of fixed assets” | D08 - K02 (all regarding material exploration assets) |
Fixed assets | 01 “Fixed assets”, 02 | D01 - K02 (except for depreciation of fixed assets accounted for in account 03 “Income-generating investments in tangible assets” | |
Profitable investments in material assets | 1160 | 03, 02 | D03 - K02 (except for depreciation of fixed assets accounted for on account 01) |
Financial investments | 1170 | 58 “Financial investments”, 55-3 “Deposit accounts”, 59 “Provisions for impairment of financial investments”, 73-1 “Settlements on loans provided” | D58 - K59 (in terms of long-term financial investments) + D73-1 (in terms of long-term interest-bearing loans) |
Deferred tax assets | 1180 | 09 “Deferred tax assets” | D09 |
Other noncurrent assets | 1190 | 07 “Equipment for installation”, 08, 97 “Deferred expenses” | D07 + D08 (except for exploration assets) + D97 (in terms of expenses with a write-off period of more than 12 months after the reporting date) |
Reserves | 10 “Materials”, 11 “Animals for growing and fattening”, 14 “Reserves for reducing the cost of material assets”, 15 “Procurement and acquisition of material assets”, 16 “Deviation in the cost of material assets”, 20 “Main production”, 21 “Semi-finished products own production”, 23 “Auxiliary production”, 28 “Defects in production”, 29 “Service production and facilities”, 41 “Goods”, 42 “Trade margin”, 43 “Finished products”, 44 “Sales expenses”, 45 “Goods shipped”, 97 | D10 + D11 - K14 + D15 + D16 + D20 + D21 + D23 + D28 + D29 + D41 - K42 + D43 + D44 + D45 + D97 (for expenses with a write-off period of no more than 12 months after the reporting date) | |
Value added tax on purchased assets | 1220 | 19 “Value added tax on acquired assets” | D19 |
Accounts receivable | 1230 | 46 “Completed stages of work in progress”, 60 “Settlements with suppliers and contractors”, 62 “Settlements with buyers and customers”, 63 “Provisions for doubtful debts”, 68 “Settlements for taxes and duties”, 69 “Settlements for social insurance and security", 70 "Settlements with personnel for wages", 71 "Settlements with accountable persons", 73 "Settlements with personnel for other operations", 75 "Settlements with founders", 76 "Settlements with various debtors and creditors" | D46 + D60 + D62 - K63 + D68 + D69 + D70 + D71 + D73 (except for interest-bearing loans accounted for in subaccount 73-1) + D75 + D76 (minus VAT calculations reflected in the accounts on advances issued and received) |
Financial investments (excluding cash equivalents) | 1240 | 58, 55-3, 59, 73-1 | D58 - K59 (in terms of short-term financial investments) + D55-3 + D73-1 (in terms of short-term interest-bearing loans) |
Cash and cash equivalents | 50 “Cash”, 51 “Current accounts”, 52 “Currency accounts”, 55 “Special bank accounts”, 57 “Transfers in transit”, | D50 (except for subaccount 50-3) + D51 + D52 + D55 (except for the balance of subaccount 55-3) + D57 | |
Other current assets | 1260 | 50-3 “Cash documents”, 94 “Shortages and losses from damage to valuables” | D50-3 + D94 |
Passive balance: decoding lines
Indicator name | Code | Which account data is used? | Algorithm for calculating the indicator |
---|---|---|---|
Authorized capital (share capital capital, authorized capital, contributions of partners) | 1310 | 80 “Authorized capital” | K80 |
Own shares purchased from shareholders | 1320 | 81 “Own shares (shares)” | D81 (in parentheses) |
Revaluation of non-current assets | 1340 | 83 “Additional capital” | K83 (in terms of amounts of additional valuation of non-current assets) |
Additional capital (without revaluation) | 1350 | 83 | K83 (except for amounts of additional valuation of non-current assets) |
Reserve capital | 1360 | 82 “Reserve capital” | K82 |
Retained earnings (uncovered loss) | 99 “Profits and losses”, 84 “Retained earnings (uncovered loss)” | Or K99 + K84 Or D99 + D84 (the result is reflected in parentheses) Or K84 - D99 (if the value is negative, it is reflected in parentheses) Or K99 - D84 (same) |
|
Borrowed funds | 1410 | 67 “Calculations for long-term loans and borrowings” | K67 (in terms of debt with a maturity date of more than 12 months at the reporting date) |
Deferred tax liabilities | 1420 | 77 “Deferred tax liabilities” | K77 |
Estimated liabilities | 1430 | 96 “Reserves for future expenses” | K96 (in terms of estimated liabilities with a maturity period of more than 12 months after the reporting date) |
Other obligations | 1450 | 60, 62, 68, 69, 76, 86 “Targeted financing” | K60 + K62 + K68 + K69 + K76 + K86 (all in terms of long-term debt) |
Borrowed funds | 1510 | 66 “Calculations for short-term loans and borrowings”, 67 | K66 + K67 (in terms of debt with a maturity of no more than 12 months as of the reporting date) |
Accounts payable | 60, 62, 68, 69, 70, 71, 73, 75, 76 | K60 + K62 + K68 + K69 + K70 + K71 + K73 + K75 + K76 (in terms of short-term debt, minus VAT calculations reflected in the accounts on advances issued and received) | |
revenue of the future periods | 1530 | 98 “Deferred income” | K98 |
Estimated liabilities | 1540 | 96 | K96 (in terms of estimated liabilities with a maturity date of no more than 12 months after the reporting date) |
Other obligations | 1550 | 86 | K86 (in terms of short-term liabilities) |
This page shows the balance sheet with accounts. The accounts are shown according to the chart of accounts, which is also available on the website. This balance sheet has been prepared to facilitate understanding of the relationship between the accounting accounts and the balance sheet figures. In contrast to the regulated form in which enterprises prepare reports, a column has been added to the balance sheet indicating the accounting accounts, the balances of which can be reflected in one or another line of the balance sheet. To make it easier to understand, added to some balance lines decoding "including". So, for example, as can be seen below, the concept of “inventories” includes raw materials, work in progress, goods, etc. In the approved balance sheet form, this is one line and filling it out for beginners causes great difficulties. If for a task it is necessary to fill out a balance sheet according to the approved form, then the “including” decoding lines must be summed up and the result included in the final line.
ASSETS | |
I. NON-CURRENT ASSETS | |
Intangible assets | 04 - 05 |
Research and development results | |
Fixed assets | 01 - 02, 07, 08 |
Profitable investments in material assets | 03 |
Financial investments | 58, 59 |
Deferred tax assets | |
Other noncurrent assets | |
Total for Section I | |
II. CURRENT ASSETS | |
Reserves | |
including: | |
Raw materials, supplies and other similar assets | 10, 15, 16 |
Animals being raised and fattened | 11 |
Costs in work in progress (distribution costs) | 20, 21, 23, 29, 44, |
Finished products and goods for resale | 41, 42, 43 |
Goods shipped | 45 |
Future expenses | 97 |
Other inventories and costs | |
Value added tax on purchased assets | 19 |
Accounts receivable | |
including: | |
Buyers and clients | 62, 76, 63 |
Bills receivable | 62, 76 |
Debt of subsidiaries and dependent companies | 58, 60, 62, 75, 76 |
Advances issued | 60 |
Other debtors | |
Financial investments (excluding cash equivalents) | 58, 59 |
Cash and cash equivalents | |
including: | |
Cash register | 50 |
current accounts | 51 |
foreign currency accounts | 52 |
other funds | 55, 57 |
Other current assets | |
Total for Section II | |
BALANCE | |
PASSIVE | |
III. CAPITAL AND RESERVES | |
Authorized capital (share capital, authorized capital, contributions of partners) | 80 |
Own shares purchased from shareholders? | 81 |
Revaluation of non-current assets | |
Additional capital (without revaluation) | 83 |
Reserve capital | 82 |
Retained earnings (uncovered loss) | 84 |
Total for Section III | |
IV. LONG TERM DUTIES | |
Borrowed funds | 67 |
Deferred tax liabilities | |
Estimated liabilities | |
Other obligations | |
Total for Section IV | |
V. SHORT-TERM LIABILITIES | |
Borrowed funds | 66 |
Accounts payable | |
including: | |
Suppliers and contractors | 60, 76 |
Debt to the organization's personnel | 70 |
Debt to state extra-budgetary funds | 69 |
Debt to the budget | 68 |
Advances received | 62, 76 |
Other creditors | |
revenue of the future periods | 98 |
Estimated liabilities | |
Other obligations | 75, 96 |
Total for Section V | |
BALANCE |
The balance sheet is one of the most important components of financial statements. It is used to judge the financial condition of the enterprise, the size of its property or debts, and plan future activities.
Balance sheet form
The balance sheet form, approved by Order of the Ministry of Finance dated July 2, 2010 No. 66N, as amended on December 4, 2012, is used to submit reports for 2013.
It consists of 2 parts - Active and Passive. The asset, in turn, consists of the following sections:
- Fixed assets;
- Current assets.
The balance sheet liability includes the following sections:
- Capital and reserves;
- Long term duties;
- Short-term liabilities.
Asset and liability should always be equal.
As already mentioned, the balance sheet form is approved by the Order of the Ministry of Finance. Each section consists of lines, which, in turn, have their own code. For example, the section “Fixed Assets” is line code 1150, and “Long-term borrowed funds” is 1140.
When drawing up a balance sheet, there are several important points to remember:
- It is not allowed to offset between the asset and liability lines;
- At the beginning of the year there should be exactly the same data as at the end of the previous one;
- All balance data must be confirmed.
As a rule, the balance is filled out in thousands of rubles. In this case, decimal values are not used. If the company’s performance indicators significantly exceed thousands of rubles, then it is allowed to fill out the balance sheet in millions, also without decimals.
Line by line filling of the balance sheet
Filling out each line of the balance sheet requires the accountant to be attentive and thorough. In the table we will look at where you need to take data when filling out a balance sheet asset.
Name |
Line number |
Formula |
Intangible assets |
Balance on DT account 04 (without R&D) – balance on CT account 05 |
|
Research and development results |
Balance on Dt account 04 subaccount “R&D expenses” |
|
Intangible search assets |
Balance on Dt account 08 subaccount “Intangible exploration assets” - balance on Kt account 05 subaccount “Amortization and impairment of intangible exploration assets” |
|
Material prospecting assets |
Balance on DT account 08 subaccount “Tangible exploration assets” - balance on CT account 02 subaccount “depreciation and impairment of tangible exploration assets” |
|
Fixed assets |
Balance on debit of account 01 – balance on KT account 02 |
|
Profitable investments in material assets |
Balance on Dt account 01 – balance on Kt account 02 sub-account “Depreciation of income investments in material assets” |
|
Financial investments |
Balance of account 58 (long-term, i.e. more than 12 months) + balance of account 55 subaccount “Deposit accounts” - Balance of account 59 (long-term investments only) + balance of account 73 subaccount “Settlements with personnel for other transactions” » (long-term interest-bearing loans issued to employees) |
|
Deferred tax assets |
Balance on Dt account 09 |
|
Other noncurrent assets |
Other non-current assets that were not reflected in the asset |
|
Total for section 1 |
Sum of all lines from 1110 to 1190 |
|
Balance on Dt accounts 10, 11, 41, 43, etc. |
||
Value added tax on purchased assets |
Balance on Dt account 19 |
|
Accounts receivable |
Balance on Dt accounts 60, 60, 76, etc. – Balance on Kt account 63 |
|
Financial investments (excluding cash equivalents) |
Balance on Dt account 55 (deposit accounts related to short-term investments) + Balance on Dt 58 – Balance on Kt 59 (only for short-term investments) + Balance on Dt 73 (only on short-term loans provided to their employees) |
|
Cash and cash equivalents |
Balance on Dt accounts 50, 51, 52, 57, etc. |
|
Other current assets |
Other current assets that were not reflected in the section |
|
Total for section 2 |
Sum of all lines from 1210 to 1260 |
|
Sum of rows 1100 + 1200 |
The liability side of the balance sheet is filled in exactly the same way.
Name |
Line number |
|
Authorized capital (share capital, authorized capital, contributions of partners) |
Balance on CT account 80 |
|
Own shares purchased from shareholders |
Balance on account 81 |
|
Revaluation of non-current assets |
Balance on Kt account 83 subaccount “Additional valuation of property” |
|
Additional capital without revaluation |
Balance on CT account 83 – amounts of additional valuation of fixed assets and intangible assets |
|
Reserve capital |
Balance on CT account 82 (excluding special funds from which current expenses are financed) + balance on CT account 84 (in terms of special funds) - |
|
Retained earnings (uncovered loss) |
Balance on Dt account 84 – if losses are not covered; Balance on Kt account 84 - if there is retained profit |
|
Total for section 3 |
Line 1310 – 1320 + 1340 + 1350 + 1360 + (-) 1370 |
|
Borrowed funds |
Balance on CT account 67 (long-term AZ)* |
|
Deferred tax liabilities |
Balance on CT account 77 |
|
Estimated liabilities |
Balance on CT account 96 (more than 12 months) |
|
Other obligations |
All long-term liabilities that were not reflected in the section |
|
Total for section 4 |
Sum of lines 1410 - 1450 |
|
Borrowed funds |
Balance of accounts 66 and 67 (short-term accounts)* |
|
Accounts payable |
Balance amount for CT accounts 60, 62, 68, 69, 70, 71, 73, 75, 76 |
|
revenue of the future periods |
Balance on CT account 98 + balance on CT account 86 |
|
Estimated liabilities |
Balance on CT account 96 (less than 12 months) |
|
Other obligations |
Other short-term liabilities that were not reflected in the section |
|
Total for section 5 |
Sum of lines 1510 - 1550 |
|
Sum of lines 1300 + 14000 + 1500 |
*When preparing reports, the accountant must include in short-term liabilities those that may not be repaid within one year after the reporting date.
The accountant has the right to classify borrowed obligations together with interest as short-term liabilities if they must be repaid within one year after the reporting date.
For example:
You received a long-term loan for 5 years and you take it into account as part of long-term debt on account 67, but on the reporting date (December 31, 2014) you will have it repaid, then in the reporting for 2014 you need to take this loan into account short-term debt, as well as interest on it.
Interrelation of the balance sheet with other forms of reporting
Some balance sheet lines must be equal to lines from other forms of financial statements. Let's consider this relationship using the formulas, where BB is the balance sheet, FFR is the financial results statement, OIC is the statement of changes in capital, ODDS is the cash flow statement.
- Line 1370 BB = Line 2400 OFR
- Line 1180 BB (difference between indicators at the end and beginning of the reporting period) = Line 2450 OFR
- Line 1420 (the difference between the indicators at the end and beginning of the reporting period) = Line 2430 OFR
- Line 1130 BB = Line 3100 OIC “Authorized capital”
- Line 1320 BB = Line 3100 OIC “Own shares purchased from shareholders”
- Line 1360 BB = Line 3100 OIC “Reserve capital”
- Line 1370 BB = Line 3100 OIC "Retained earnings (uncovered loss)
- Line 1250 BB = Line 4500 ODDS at the beginning and end of the reporting period
Correctly filling out the balance sheet is an important component of the annual financial statements of an enterprise.
A balance sheet is a reporting document that identifies assets and their sources in monetary terms as of a specific date. This document consists of 2 tables:
The balance sheet is part of the accounting (financial) statements submitted annually by all commercial and non-commercial enterprises. The obligation to prepare an interim balance sheet is provided for by local regulations of organizations. An interim accounting report is submitted to regulatory state authorities in the event of liquidation of an enterprise.
How to draw up a balance sheet correctly?
Every year, without exception, all organizations, regardless of the chosen taxation regime, must submit a balance sheet to the Federal Tax Service inspection and state statistics bodies. Before preparing the report you must:
- Check the accuracy and timeliness of recording all business transactions;
- Generate balance sheets for accounts broken down by subaccounts;
- Summarize data from accounting registers and general ledger.
To reflect information in the main accounting document, thousands of rubles or millions of rubles are used. Depending on the choice of unit of measurement, the OKEI code is indicated on the title page.
Requirements for filling out the balance are presented in accordance with the rules for filling out the required details:
- Reporting period;
- Full name of the enterprise in accordance with the Charter;
- Code of the main activity;
- OPF property code;
- Units;
- Legal address;
- Approval dates.
Important: an organization can use a unified balance sheet form in its work, or it can develop its own, indicating all the required details.
The sections of the main accounting document are a table of indicators, each of which is an independent balance sheet item. All items in the balance sheet have their own code designation - line number and are calculated using the appropriate formulas:
The basic rules for drawing up a balance sheet include:
- The specified information at the beginning of the registered period must correspond to the data at the end of the previous period.
- It is impossible to offset between the amounts of asset and liability items, between indicators of financial performance, except in cases regulated by law.
- Indicators reflected in the balance sheet that require confirmation must be confirmed by data from inventory records, acts and calculations.
When drawing up a report, it is necessary to remember that the information collected in form 1 must be the same or close in value to the data reflected in other forms of financial reporting and in tax returns.
The general rules do not provide for the procedure for rounding amounts when drawing up forms 1 and forms 2, therefore the organization itself must develop a methodology and approve it by local regulations. If changes in the information contained in the balance sheet for previous periods have lost relevance not as a result of correcting errors in accounting, but as a result of changes in legislation, then there is no need to correct such indicators.
Lines that summarize data about several assets are disclosed in the notes to the document. The explanations provide background information about the analytical component of the indicators. The transcript must contain subitems and the corresponding amounts for each generalized item.
Important: the sum of all asset lines of the balance sheet must be identical to the sum of all liability lines.
Procedure for filling out balance sheet assets
Form 1 asset consists of 2 sections:
- Current assets;
- Fixed assets.
All types of property, financial assets and debts subject to collection are assets of the enterprise. Depending on the degree of liquidity, they are classified into the first or second section:
- Current assets include property that has high liquidity, i.e., something that can be sold in a short time and received funds, for example, inventory items.
- Non-current assets include property with low liquidity, the sale period of which takes a long time, for example, fixed assets.
The lines of the 1st section of the asset are calculated using the following formulas:
Important: in order for the document to contain signs of a good balance, it is necessary to have analytical information for each of the accounting accounts.
The second section of the balance sheet is filled in according to the following accounts:
Important: the amount of balances on active accounts that are not included in the general information is entered in the certificate of the presence of valuables in off-balance sheet accounts.
The procedure for filling out the liability balance
The liability of the main accounting document of a commercial organization consists of 3 sections:
- Capital and reserves;
- Long term duties;
- Short-term liabilities.
The liabilities side of the balance sheet indicates the sources of formation of the enterprise's ownership. The information reflected in it allows you to find out the total financial result of the organization’s activities for a certain period.
The amounts of the lines of the 3rd section of the balance sheet are calculated based on the following data:
The economic indicator of the financial result must be reflected in accordance with the date as of which the calculation is made:
- If during the period the profit was distributed among the founders, then only the balance after payment of dividends is taken into account.
- If retained earnings remain from the previous period, then the current year's result is added to the previous balance.
Important: the “Capital and Reserves” section reveals information about the availability of your own sources for generating wealth. The higher the valuation of capital, the more reliable the position of the enterprise.
The lines of section 4 include information:
The inclusion of debt into short-term or long-term is at the discretion of the organization itself. During the reporting period, it can transfer debts from one category to another based on the provisions provided for in the accounting policies.
Important: long-term liabilities include only those debts that will not be repaid within the next 12 months.
Section 5 of the balance sheet includes the following indicators:
Before filling out form 1, it is recommended to check with suppliers and customers to ensure that information on the availability of receivables and payables is entered correctly.
Important: compliance with the procedure for drawing up the balance sheet increases the reliability of the information reflected, which is necessary, since the financial statements reveal the financial condition of the organization as of the reporting date.