Preparing balance sheets

What you'll learn

1. 1

   A balance sheet is like a financial selfie — it shows what a business owns (assets) and what it owes (liabilities) at one moment.

2. 2

   What's the balance sheet equation?

3. 3

   Drag the items into the correct section of the balance sheet: asset, liability, or equity.

4. 4

   Let's prepare a simple balance sheet for 'TechBox Ltd' together.

5. 5

   For 'GreenGarden Ltd', assets are £25,000 and liabilities are £8,000. What is the equity?

6. 6

   Complete the balance sheet by dragging the correct numbers into the boxes.

7. 7

   A balance sheet is always prepared at a specific point in time — true or false?