☻Before doing the Balance Sheet, you must ensure that you have done your Trading , Profit and Loss account FIRST. This is to find out your Net profit or Net loss, and subtitude it into your Balance Sheet.
Example of Trading, Profit and Loss Account:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgG4Y0saCWqKHrr1GZOjZc623oDGX-HZPSAOc0fjBMOJd-rck6aPR8kdh72MLb0NU3GhIbaOBy5O142LVHow2-mhlF2N-nizd3WgvAVSI4j4MuwCL5Qg6R0PWxZZI56YiVWysl0JVemUB8/s640/8.bmp)
- Thus, from here, take the Net loss b/d OR Net profit b/d and put it into your Balance Sheet
♣Ensure that the Balance Sheet is Balanced in the end.