Create a Balance Sheet Format for Trading Company in Excel

Excel is the most widely used tool for dealing with massive datasets. We can perform myriads of tasks of multiple dimensions in Excel. Professionals often use Excel to create financial statements. In this article, I will show you how to create a balance sheet format for trading company in Excel.


Download Practice Workbook

Download this balance sheet format and use it.


Introduction to Balance Sheet

Projected balance sheets, also known as pro forma balance sheets, show estimated changes in a company’s financial status, such as investments, other assets, liabilities, and equity financing. Company owners or accounting professionals use projections to learn more about their business and forecast income and expenses for the future.

In general, a balance sheet contains 3 portions. And, these are Assets, Liabilities, and Owners’ equity. Balance sheets for an individual are organized according to the equation:

Assets = Liabilities + Equity

Assets: These are the main resources owned by the organization. They can be classified into many types. Like Current and Fixed assets, Tangible, and Intangible assets, etc.

Liabilities: They are things that the organization owes to a person or a company like cash, loans, etc.

Equity: The portion of a business belongs to the owner. This is the difference between assets and liabilities.


3 Steps to Create Balance Sheet Format for Trading Company in Excel

In this article, I have divided the process of creating a balance sheet into 3 easy steps. However, there is no fixed rule for this.


Step 1: Create Format Outline

The first step is to create an outline. The balance sheet should start with a heading followed by the company’s name and the date it is being created.

Outline for balance sheet format for trading company in excel


Assets

These are the main resources an organization owns. There are many types of assets like Current and Fixed assets, Tangible, and Intangible assets, etc.

The balance sheet includes assets in the following way.


Liabilities

Liabilities are mainly of two types. Long-term liabilities and current liabilities. Long-term liabilities are the liabilities that are payable beyond 12 months. The current liabilities must be paid within 12 months.

Outline for balance sheet format for trading company in excel


Owner’s Equity

Next comes the Owner’s Equity. The outline for this might look like this.

Read More: Balance Sheet Format of a Company in Excel (Download Free Template)


Step 2: Write Down Information

Now, you have to give the inputs correctly. Write down the information in the correct places.


Assets

First comes the assets. Here is a sample of all the asset accounts with their values.

Input for balance sheet format for trading company in excel


Liabilities

Next comes the liabilities. You must categorize the accounts into long-term and current liabilities.


Similar Readings


Owner’s Equity

Finally, put the information correctly for the Owner’s Equity accounts.

Input for balance sheet format for trading company in excel

Read More: Balance Sheet Format for Construction Company in Excel


Step 3: Calculate Total Assets, Liabilities, and Owner’s Equity

Now, I will calculate total assets, liabilities, and owner’s equity. I will use the SUM function to calculate these values.

First of all, I will calculate the total current assets. To do so,

  • Go to C14 and write down the following formula
=SUM(C9:C13)

  • Then, press ENTER to get the output.

Asset calculation for balance sheet format for trading company in excel

Similarly, calculate the total fixed asset.

Now, we will calculate the total asset for the current period. To do so,

  • Go to C24 and write down the following formula
=C14+C21

Asset calculation for balance sheet format for trading company in excel

  • Then, press ENTER to get the output.

  • Now, we will calculate the liabilities in the same way.

Liabilities calculation for balance sheet format for trading company in excel

  • The Equity calculation will follow the same way.

  • The balance sheet includes total liabilities and owner’s equity. So we will now calculate that.
  • To do so, go to C52 and write down the following formula
=C41+C50

Liabilities calculation for balance sheet format for trading company in excel

  • Then press ENTER to get the output.

Equity and Liabilities calculation for balance sheet format for trading company in excel

Read More: How to Make Balance Sheet in Excel (2 Useful Examples)


Things to Remember

  • The total asset will equal the sum of total liabilities and equity.

Conclusion

In this article, I have explained how to create a balance sheet format for trading company in Excel. I hope it helps everyone. If you have any suggestions, ideas, or feedback, please feel free to comment below. Please visit Exceldemy for more useful articles like this.


Related Articles

Akib

Akib

Hi, this is MD Akib Bin Rashid. I completed my BSc in Engineering back in 2019. After that, I did an MBA. Then, I joined as an Excel and VBA Content Developer at SOFTEKO Digital. Being passionate about data analytics and finance, I will try to assist you with Excel

We will be happy to hear your thoughts

Leave a reply

ExcelDemy
Logo