The balance sheet equation and methods of setting out

A balance sheet must always satisfy the basic equation:

Assets = Proprietor’s capital + Liabilities

The balance sheet equation underlies the balance sheet in that every transaction of the enterprise affects the balance sheet twice.

The methods of setting out the balance sheet include: double-sided (or horizontal) format, vertical format.

The vertical format is the most popular form of presentation today, just like this:

Here describe more details about balance sheet.

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