View Full Version : Accounting
Tita_C
Feb 12, 2012, 09:30 AM
I am trying to do a classified balalnce sheet and there is not cash balance and I have to find the cash amount and balance the sheet. Can someone give instruction on how to start this balance sheet preparation. I am just trying to figure out how to start it off. Do I do a trail sheet first or a T account. Totally lost.
paraclete
Apr 13, 2012, 08:16 PM
All accounting drafting starts with a trial balance. Now do you have the balance of the equity account. Isolate the revenue items, the balance of which will ultimately be added to the equity account and what remains should be the items which will appear in the balance sheet. You may assume that the missing number is the cash balance only because you have been asked to determine the cash balance
pready
Apr 14, 2012, 06:54 AM
The accounting equation is:
Assets = Liabilities + Owners Equity
If you have the balances for all of your accounts you have to determine what type of account it is then you can figure out what your cash balance is. You start by adding your Liabilities and owners equity accounts together, then subtract out your assets and the remaining amount will be your cash balance.