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.