Balance Sheet Maker

The accounting equation

A balance sheet reports what is owned, what is owed and what belongs to owners at one point in time. The fundamental equation is always:

Total Assets = Total Liabilities + Total Equity

This maker enforces that check explicitly. It computes Total Assets as Current Assets plus Fixed Assets (net), where Current Assets is cash plus accounts receivable plus inventory, and Fixed Assets (net) is equipment less accumulated depreciation. It computes Total Liabilities as current liabilities (accounts payable plus short term loan) plus long term loan, and Total Equity as owner capital plus retained earnings. The difference is Total Assets minus (Total Liabilities plus Total Equity).

An absolute difference of 0.005 or less is treated as balanced. Larger differences trigger an alert. Displayed amounts are rounded for the locale currency, so a small difference can display as zero even when the status is unbalanced.

Worked example from the default figures

The default figures balance exactly. The example below uses US dollars; the tool displays the same numeric inputs in the currency configured for each locale without converting them.

Try changing retained earnings from $200.00 to $300.00. Total Equity becomes $18,300.00 and Liabilities plus Equity becomes $42,600.00, while Total Assets stays $42,500.00, so the tool shows Unbalanced by $100.00. Setting all ten amounts to zero gives $0.00 on both sides and shows Balanced.

Using the four step flow

Step 1 asks for current assets, step 2 for fixed assets and liabilities, step 3 for equity and the as of date, and step 4 shows the complete balance sheet table, the balanced or unbalanced status and the plain text copy. Amounts use the currency and number formatting configured for the locale. This changes the display only; no currency conversion takes place. Enter all figures in the same currency.

Practical limits

This is a worksheet for organising entered figures, not accounting, tax, legal, audit or financial advice. It does not import bank transactions, validate GAAP or IFRS categories, calculate profit or loss, or suggest journal entries. Verify that cash, receivables, inventory, equipment, depreciation, payables, loans, owner capital and retained earnings belong in the accounts you intend, check the figures against source records, and ask a qualified professional about the correct treatment for your situation.