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Instructions for a Sole Proprietorship or a Partnership Balance Sheet

Assets Cash Accounts Receivable Supplies Prepaid Insurance Land Building Equipment Total Assets

Morrison Pet Supply Company Balance Sheet December 31,20XX Liabilities and Owners Equity $XX,XXX Liabilities XX,XXX Notes Payable $XX,XXX XX,XXX Accounts Payable X,XXX X,XXX Total Liabilities XX,XXX XX,XXX XX,XXX Owners Equity X,XXX A.L. Morrison, Capital XX,XXX $XX,XXX Total Liabilities and Owners Equity $XX,XXX

Systematic Instructions Always start with the three-line header, which includes the name of the company, the title of the statement, and the date the statement is prepared. The body of the balance sheet is divided into two halves on the left side is the asset section and on the right side is the liabilities and owners equity section. Asset Section of the Simple Balance Sheet Step 1.In the center of the left hand two columns of the body of the statement, center the title Assets. Step 2.On the next few lines of the statement list all assets in order of liquidity (how fast the assets can be changed into cash). Place the dollar value of the asset in the amounts column next to the account title. Step 3. Add all of the assets values together and place the total in the amounts column and label it Total Assets. Make sure to place a double underline under the total for this line item. Dollar signs are to be placed at the top and bottom of any column of numbers that are either added or subtracted and at the end grand total.

MJC 5/2012

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Instructions for a Sole Proprietorship or a Partnership Balance Sheet

Liabilities and Owners Equity section of the Simple Balance Sheet

The right hand side of the balance sheet is further divided into two sections, which are the liability section and the owners equity section. At the end, the subtotals for these two sections are added together. The total from these two sections will match the total assets. Liability Section Step 1.In the center of the right hand two columns of the body of the balance sheet center the title Liabilities and Owners Equity on the first line. Step 2. On the second line, center the header Liabilities across the two columns. Step 3. On the next few lines, list the liabilities in order of magnitude (highest to lowest in cost). Dollar amounts should go in the right hand column. Step 4. After listing all of the liabilities on the next line, subtotal (add together) all of the liabilities. Title this line Total liabilities. Owners Equity Section

Step 1. In the center of the right hand two columns of the body of the balance sheet, center the title Owners Equity after the total liabilities. Step 2. On the next line place the account title Owners Name, Capital in this case the owners name is A.L. Morrison. Each owner will have his or her own separate Capital account. In the case of Morrison Pet Supply Company a sole proprietorship (which means there is only one owner), there is only one capital account listed. For your own company you will list the name or names of the owners of the company after which you will place a comma and the word capital. Place the dollar amount of all investment, which comes from the owners equity statement, in the right hand column. You will only need to subtotal the owners equity section if it is a partnership before you total the liabilities and owners equality section Step 3. Finally, add the total liabilities and the owners equity to arrive at the dollar amount for the last line. Title the last line Total liabilities and owners equity. Double underline the final total.

MJC 5/2012

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