Closing balance of Debtors ===================================
e ) All Advance received incomes will be our current liabilities in balance sheet .
f ) All advance paid expenses will be our current asset in the balance sheet .
g ) All received donation for special fund will be the long term liability in the balance sheet
h ) Any legacy amount which will get from the will of any person will be capital receipt and will be show in long term liability .
i ) The fund for life membership account will goes to the balance sheet ' s liability side .
3rd Step : Not Included Items in Balance Sheet
We leave opening balance , all operating incomes and expenses because all these will go to income and expenditure account .
4th Step : Show Adjustments
There are many adjustments which you have to do in the balance sheet whose information , you can not get from receipt and payment account . For example , we will make income and expenditure account from receipt and payment account and its surplus will be added in reserves and surplus in the liability side of balance sheet . We also show all the funds and capital funds in our new balance sheet by taking figures from previous year balance sheet . Except this , we also check previous year balance sheet if there is any fixed asset , current asset , current liability or fixed liability which we still did not write . Write them . If some proportion of liability paid , then decrease same before showing it in the balance sheet .
5th Step : Match the Balance of Asset Side and Liability Side
After making the balance sheet , you should match its asset side and liability side . It must be equal .