Sample Classified Balance Sheet Template: Single Proprietorship - Retail
To illustrate how the accounting cycle is partly completed, the extracted general ledger accounts and their respective balances were prepared as a balance sheet financial report for the year end. Kindly click on the image to have a larger view of said report.
You will note that the Cash, Accounts Receivable, Merchandise Inventory and Prepaid Insurance accounts have been sub-categorized as Current Accounts. The Furniture and Office Equipment accounts which carry historical costs are classified as Fixed Asset, to readily distinguish it as a non-current account. Although the business can be considered as liquid and that receivables as well as liabilities were maintained at a minimum, the reader of the balance sheet report will need to look into the operation of the business by securing a copy of the income statement.
The Owner's Equity shows that the current year's operation was not favorable since a Net Loss reduced the owner's capital investments. The owner of the business did not make any withdrawals using the business funds either since the Drawings against the Capital account does not reflect any amount. This means he did not receive any form of compensation at all for whatever efforts he exerted in running the business.
Note: The Net Loss amount of $ 4,253 is the net effect of the post-closing entries entered in the Profit and Loss Summary; please click on the image on the left for a larger view of the screen-shot of a simulated general ledger page of the Profit and Loss Account. In addition, you can refer to the post closing entry- Item (d) of “Bright Hub’s Media Gallery for Example of Year End Worksheet for Post Closing Trial Balance", and you will note that it was posted against the Capital, Beginning account.
The Sample Classified Balance Sheet Template: Single Proprietorship - Retail at Bright Hub’s Media Gallery was patterned after the sample classified balance sheet presented as image on the upper left. From there, you can download a copy of the template.