The Balance Sheet

 Understanding the Balance SheetBefore we discuss further, it helps if you understand first, what is the balance?Balance Sheet is a report that contains assets, debts and capital at a particular company.Property is presented in the balance sheet is based on liquidity, which is the speed of such property into money, the company's activities. Prepared on the debt while the repayment period. And conservation of capital is based on the level / duration of stay in the company.Balance Sheet reportFrom the above conclusions can you draw the Balance Sheet as follows:- Financial Statements.- Containing Assets, Debt and Capital.- At any given time (period).
Kind of - kind of balanceA. trial balancea. UnderstandingThe trial balance is a list of balances of each ledger account as at a particular time.When the trial balance is prepared? The trial balance is usually established at the end of the accounting period, which aims to examine the similarities debit balance with credit balances. For details you observe the following examples of trial balance.b form of Trial BalanceBalance the form of a list that contains the company name (name) Trial Balance, accounting period, and the column format (column) consists of no. accounts, accounts, debit and credit.Balance is the gateway for me to understand what it is to understand the balance sheet accounting because it will be much easier to understand on matters relating to accounting such as income statement, general ledger, trial balance, general ledger or statement of changes in capital, etc.. I write this article in order to type in my science is not "rusty" and may be useful to others who want to understand the balance sheet, this is the understanding and strategies I use to study accounting because I myself was not an accounting expert so please be corrected if there is an error and may be useful for the needyBalance is also often referred to as the statement of financial position or balance sheet if the sheet is only required for large companies or only for practitioners of accounting at how the professionals such as small and medium businesses or even for online businesses, if they do not need to understand the balance if you ask me, they need to understand to understand the balance sheet because they can know the real position of their finances such as how much cash, capital, debts, liabilities, accounts receivable, assets, depreciation, assets and liabilities and the important thing is to use the information contained in the balance sheet consideration as a basis for making decisions, but the next challenge is how to create a balance for that do not have the financial records in accordance with generally accepted accounting standards or a skill that is required to prepare financial statements, this can be overcome by hiring a certified public accountant, or if it's too expensive can hire the services of an accountant who has experience to prepare financial statements, or can be taught herself how to make a financial statement so that it can compile itself, because a business will require a good system of financial records do not look at whether these companies are small companies, medium, individuals, public companies, or online business.2. NeracaPembayarana. UnderstandingBalance of payments is a record of all international economic transactions including trade, finance and monetary between residents in a foreign country with a population over a given period, usually one year or be regarded as payment flows (in and out) for a country. The balance of payments is essentially a system of accounting that measures the performance of a country. Recording of transactions carried out with double-entry (double-entry bookkeeping system), namely, every transaction is recorded as a loan and another as a debit.Transactions are recorded as a credit currency inflows. currency inflows are transactions that bring foreign currency, which is an increase in purchasing power or external funding sources. While the transaction is recorded as a debit currency outflows. Outflow of currency are transactions requiring foreign exchange expenditure, which is a decrease in purchasing power or the use of external funds.Each credit entry (is positive) must be balanced (balanced) with a debit entry (marked negative) of the same. Both entries are combined to generate reports and use the resources of the national capital (from which we obtain danadana / purchasing power, and how we use it). Thus, the total credits and debits of a country's balance of payments will be equal in the aggregate; however, than balance of payments components, there may be surplus and deficitThe only real difficulty in understanding how each transaction affects the balance of payments lies in the interpretation of financial assets and debts to foreign parties. The following example helps understanding of the above.Example 1.1: A RI company borrows British Pound. Obviously, this is an increase in debt loan people / companies on the part of foreign Affairs (UK).This loan is a credit entry on the balance of payments. The same debit entry will be classified as an increase in foreign ownership of financial assets, namely the debtor bank accounts RI (denominated) in sterling is an asset.Have assets in foreign currency as short-term loans to other countries.b. Component Balance of PaymentsBalance of payments can be broken down into several categories, namely: the current account (current account), the capital account (capital account), and the country's foreign exchange reserves (official reserves account)

A. The current account (current account).Is part of the balance of payments which contains short-term payment flows (export-import transaction records of goods and services), which include:a. exports and imports of goods and services exports of goods and services are treated as loans imports of goods and services are treated again as a debitb. net investment income and interest rate are treated as a dividend represents payment for services due to the use of capital.c. net transfer (unilateral transfers)including foreign aid, gifts and other payments between governments and between private parties. Net transfers is not a trade in goods and services. Or in other words transaknsi running summarizes the flow of funds from one particular country with all other countries as a result of the purchase of goods or services, provision of income on financial assets, or unilateral transfers (eg, inter-governmental aid and assistance between private parties). The current account is the size of trading positions intenasional wide. Explain the current account deficit of funds out of a country larger than the funds it receives.Component of the current account includes trade balance and balance of goods and services.The current account is generally used to assess the balance of trade. Balance of Trade is simply the difference / difference between exports and imports. If imports higher than exports, then there is the trade deficit.Conversely, if exports higher than imports, there is a surplus. While the balance of services is the trade balance plus the sum of interest payments to foreign investors and dividend income from overseas investments, as well as revenues and expenditures associated with tourism and other economic transaksitransaksi.2. Balance of Capital (Capital Account)Is part of the balance of payments which reflect changes in the ownership of short-term assets and long term (such as stocks, bonds and real estate) of a country, which include: a. Capital inflows recorded as a credit for a State to sell valuable assets to foreigners to obtain cash.a. Capital outflow was recorded as a debit as a valuable asset of the country to buy foreign (overseas).b. Capital account transactions are classified as portfolio investment, direct or short term.To be able to buy foreign assets needed foreign exchange, thus the net capital flows to describe the demand for foreign exchange. Foreign exchange value is determined by the demand for foreign exchange purchase goods and services and the demand for foreign currency to buy assets. Balance of capital is a measure of short-term investments and long term the country, including foreign direct investments and investments in securities.3. Foreign Exchange Reserves (Official Reserves Account)Measuring changes in international reserves held by monetary authorities of a country. This reflects the surplus or deficit in economic transactions current account and capital meraca a country that is generated by finding the value of the difference (netting) of reserve assets and reserve debt. Foreign exchange reserves consist of:a) international reserves consist of gold and foreign assets that can be traded.b) The increase in each asset is recorded as a debitc) decrease in reserve assets is recorded as a creditc. Balance of Payments MeasuresBalance of payments can be prepared by combining the balance of payments itemsthe following:A. Basic balance focus on transactions that are considered essential for healthy economic exchange. Basic balance the current account balance and long-term capital flows, but does not include short-term capital flows, such as bank deposits deposits are strongly influenced by temporary factors: short-term monetary policy, changes in interest rates and anticipations of currency fluctuations. Basic balance trend emphasizes a longer period of time on the balance of payments.2. Net liquidity balance (net liquidity balance) or the overall balance sheet includes the basic balance plus short-term capital flows illiquid private parties and error and omission. The overall balance of loans measured the changes in the domestic private sector or the private sector domestic borrowing abroad is needed to maintain payments in equilibrium without adjusting the position of foreign reserves. Short-term private capital flows and illiquid error and omission are recorded in the balance sheet, while the liquid assets and debt is recorded (excluded).3. Current account foreign exchange reserves indicate that adjustments will be made to reach equilibrium balance. Because the balance of payments should be balanced, each of which can not be traced to differences over certain transactions recorded in the statistical discrepancy (the difference can not be taken into account).
Understanding of the work sheetThe work sheet is a sheet of paper berlajur / columnar used in activities in a manual accounting activities. The usefulness of the work sheet is to facilitate the preparation of reports keuangan.Neraca column contains all the information to the financial statements as the estimated balances before adjusting entries, adjusting entries estimates and forecasts balances after the adjusting entries.In the practice of manually organizing accounting, financial statements prepared in advance just before the whole stage dahullu completed account adjustments, is intended as a means of testing the truth. In accounting can be done manually by creating a work sheet. The work sheet contains six main parts, namely: (1) the trial balance, (2) adjustment, (3) the trial balance after the adjustment, (4) the profit and loss statements, (5) statement of changes in capital / retained earnings, (6) balance sheet .
7.2 The general form of the work sheet:Account balance Balance Balance Adjustments Income Statement Balance after adjustmentDebit Credit Debit Credit Debit Credit Debit Credit Debit CreditLane balance
The information contained in the trial balance column is exactly the same as the trial balance. So in fact by using a work sheet, trial balance can be made directly on the worksheet, do not need to be made separately.
Adjusting entry lanesThis column contains adjustments. Journals that have made the adjustment will adjust the estimates of the existing balance. To new estimates that arise will be written below the estimates of the balance sheet.
Lane trial balance after adjusting entriesAfter adjusting entries, trial balance will estimate all the estimates and balances contained in this lane, which will be seen in the financial statements. To balance estimates are not affected by the adjusting entry, langsungdipindah into this lane, but the estimates are affected by the adjusting entries, balance estimates should be calculated in question and then transferred to this column.This column should be added together in the end the two sides. So the truth and accuracy in this column can be ensured.
Income Statement columnIncome column contains all nominal estimate, which is estimated to be grouped or will be included in the calculation of the income statement. The next column of debits and credits in the income column dijumlahkan.Bila credit side of the debits is greater, then the company will make a profit. Conversely, if the discharge is greater than the credit side, the company suffered a loss.
Balance columnColumn contains all of the estimated real balance sheet, which is estimated to beclassified in the balance sheet.

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