Balance Sheet - Contents

Balance Sheet - Contents

BALANCE SHEET - Contents

For facility in understanding and rightly interpreting the contents of balance sheets, it is proposed to set out as complete a picture as possible, apart from actual figures, giving the construction of a balance sheet of a manufacturing company, with details placed in their proper order. To make the picture truly complete, the balance sheet is not that of a single company, but a Consolidated Balance Sheet of a parent company with its subsidiaries forming a group.

Under the provisions of the Companies Act, a balance sheet must always provide certain minimum relevant information, with each distinctive item shown separately, correctly named and positioned, to avoid concealment of vital knowledge from the shareholders. By following this construction you will be able to understand the variations in layout that might appear in companies' balance sheets.

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