On a balance sheet which figures are meant to balance with each other?

Any ideas?
14:06 Sun 01st Apr 2012
 
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Question Author
Any answers would be much appreciated!
the incomings and the outgoings
assets and liabilties (long and short term debt)
total ingoings should match with the sum of outgoings and what's left in account
Question Author
No I mean, once a balance sheet has been caluclated what figures do I look at to see if my balance sheet is balanced?

Is it 'total assets' has to balance with 'total liabilities & equity' like this: http://quickbooksguru...112797084a628a4-500wi and http://www.howto.co.u...ns/12391/f0130-01.png
Question Author
On my balance sheet two items match:
1) 'Total Assets' and..

2)'Total Liabilities & Net Worth' <(Known as closing capital)

Therefore does this mean that by looking at these two figures my balance sheet balances? Or am I looking at the wrong figures?
Question Author
Do my figures mean my balance sheet is balanced?
I suggest you read this bex.
http://tutor2u.net/bu...nts/balance_sheet.htm
http://www.accounting...g-course/05Xpg04.html


And you also need to ask your teacher for help. Answerbank members are very helpful but unfortunately on this thread and other threads we have seen that a you can get a lot of incorrect advice from well-meaning users.
A balance sheet is a snapshot at a point in time rather than a statement of income and expenditure
Question Author
@Factor30

That's great thanks.
So I'm assuming by this link you gave me: http://www.accounting...g-course/05Xpg04.html

My balance sheet seems correct. Thanks!
Sounds promising. Hope it's now sorted. Have you got the final balanced balance sheet for us to see?
If the net assets = equity plus retained eearnings, then yes you can have that Sunday afternoon drink.
or if all your assets = all your liabilities + equity + retained earnings, then you have salvation.

Have you covered financial ratios as these are most useful, especially the cash ones such as ROCE (returned on cap employed) and some cos use ROACE (return on average cap employed) and COACE (cash on av cap emp)
Question Author
@factor30

This is my completed Opening Balance sheet: http://oi40.tinypic.com/3496qz5.jpg

and this is a template with the same details inside (just to check calculations)
http://oi41.tinypic.com/2cqe4ab.jpg

Where I have highlighted the figures in purple (in both images) am I correct in thinking this means my balance sheet is balanced?
No.

All you've done is total the same figures twice in different places to make it look balanced. There's no "capital" side to that balance sheet. Either Share capital and retained profits (if it's a company) or Opening Capital + Profits - Drawings if it's a partnership / sole trader.

Your second link with the more details does refer to an "Owners Capital" but there's no suggestion it's been calculated and it looks like it might just be a balancing figure rather than something that proves it balances. It may well be correct and just not presented as I'd expect though.

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