Agreeing Values on the Balance Sheet (Basics)

As we know, the balance sheet is a summary of the various assets held and liabilities owed by an organization. Reconciling all the different values that, when combined, agree to the totals on the balance sheet can be easier to do in some areas than it is in others.

When checking the balance sheet or profit and loss values, it can sometimes be easier to use the Trial Balance report. The trial balance is a list of all categories in use, with the balances recognized at a specified period. The balance sheet values appear in the top section of the report, with Retained Earnings always being the last balance sheet category, followed by the profit and loss categories.

Let's start by checking the balances that will require the least amount of work.

Reconciling Debtors/Accounts Receivable (Current Assets – Trade Debtors)

This should be nice and simple. All that is required is to view the Accounts Receivable Ageing Summary...