**Preparing a balance sheet** is a must when evaluating an organization. This is because it provides a window into an organization’s financial strengths and weaknesses. With this intention, this article hopes to guide you on how to make a balance sheet in Excel.

**Download Practice Workbook**

You can download the practice workbook from the link below.

**What Is a Balance Sheet? **

In a nutshell, a **balance sheet** shows the assets and liabilities owned by an organization. In fact, you can tell if a company is making a profit or sinking into debt using the balance sheet.

A balance sheet has two parts, to clarify, the asset part and the liabilities and equities part. Consequently, the two parts can be combined to give the following equation.

`Asset = Liability + Equity`

**Assets** consist of resources that generate benefits in the future like equipment, land, buildings, etc.

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

**Equity **represents the value for a company’s shareholders after all the assets of the company were sold off and all liabilities of the company were paid off.

**2 Examples to Make Balance Sheet in Excel **

Luckily, Microsoft Excel makes preparing a balance sheet very easy. So without further ado, let’s see the process in action.

**1. Horizontal Balance Sheet**

In the *Horizontal balance sheet*, the *Assets* and the *Liabilities & Equities* columns are shown side by side. So, let’s see the step-by-step process to construct a *Horizontal balance sheet*.

__Step 01: Insert the Balance Sheet Headings__

- At the very beginning, type in
**Balance Sheet**and enter the**Date**. - Next, make two columns for
**Assets**and**Liabilities**as shown in the example below.

- Then, enter the types of
*Assets*and*Liabilities*.

- In general, you should change the number format to
**Accounting**as this is the standard practice when preparing a balance sheet. So, open the**Format Cells**dialog box by pressing**CTRL**+**1**and choose**Accounting**.

__Step 02: Calculate the Assets, Liabilities, and Equities__

- Secondly, use the
**SUM function**to compute the sub-total for the*Total Current Assets**.*

`=SUM(D6:D8)`

In this formula, the **D6:D8** cells refer to the *Current Assets*.

- Likewise, calculate the sum for the
*Total Current**Liabilities.*

`=SUM(G6:G8)`

In the above expression, the **G6:G8** cells represent the *Current Liabilities*.

- Thirdly, we add
**Fixed Assets**and calculate the**Total Fixed Asset**.

`=SUM(D11:D12)`

Here, the cells **D11:D12** consist of the *Fixed Assets*.

- In a similar fashion, we calculate the
**Long-term Liabilities**.

`=SUM(G11:G12)`

In this example, the **G11:G12** cells represent the *Long-term Liabilities*.

- Now, include the
**Stockholder’s Equity**in the*Liabilities*column and compute the**Total Equity**as illustrated below.

`=SUM(G15:G16)`

Here, the **G15:G16** cells consist of the *Stockholder’s Equity*.

__Step 03: Calculate the Total Assets and the Liabilities__

- Consequently, we get the
**Total Assets**by adding up the*Total Current Assets and Total Fixed Assets.*

`=SUM(D9,D13)`

In this formula, the** D9** cell refers to the *Total Current Assets *while the **D13** cell indicates the *Total Fixed Assets.*

- Moreover, the
**Total Liabilities and Equity**is obtained in the same way.

`=SUM(G9,G13,G17)`

In the above expression, the **G9** cell points to the *Total Current Liabilities*, next the **G13** cell refers to the *Total Long-term Liabilities*, and finally, the **G17** cell indicates the *Total Equity*.

- Considering the general principles of Accounting, the values on both the
*Total Assets*and the*Total Liabilities*and*Equity*columns must be equal.

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

**2. Vertical Balance Sheet**

*A vertical balance sheet *consists of two tables one on top of the other. Generally, the *Assets* column is shown on the top, and the *Liabilities and Equities* are shown below. Now, to construct a *Vertical balance sheet*, just follow these steps.

__Step 01: Calculate Total Assets__

- Firstly, make a heading named Assets followed by a sub-heading for
**Current Assets**. - Next, enter the
*Current Asset*types on the left side and record the assets’ values on the right side.

- Generally speaking, the
**Accounting**number format is preferable when making balance sheets. So, press**CTRL + 1**to open a dialog box and select**Accounting**.

- Following, compute the
**Total Current Assets**using the**SUM**function*.*

`=SUM(F6:G8)`

In this formula, the **F6:G8** cells refer to the types of *Current Assets*.

- In turn, compute the
**Total Fixed Assets**as shown below.

`=SUM(F11:G12)`

- Eventually, we get the
**Total Assets**by adding up the*Fixed Assets*and the*Current Assets*.

`=SUM(F9,F13)`

In the above formula, the **F9** cell indicates the *Total Current Assets*, and the **F13 **cell points to the *Total Fixed Assets*.

__Step 02: Compute Total Liabilities__

- Secondly, we enter the types and the corresponding values of the
**Current Liabilities**respectively. - Following, we calculate the
**Total Current Liabilities**as portrayed below.

`=SUM(F17:G19)`

- Then, we calculate the
**Long-term Liabilities a**s shown below.

`=SUM(F22:G23)`

- Hence, the
**Total Liabilities**consist of the summation of*Current Liabilities*and*Long-term Liabilities***.**

`=SUM(F20,F24)`

- Last but not the least, we obtain the
**Total Equity**using the same process as before.

`=SUM(F27,F28)`

- Finally, we obtain the
**Total Liabilities and Equity**.

`=SUM(F25,F29)`

In the above expression, the **F25** cell points to the *Total Liabilities*, and the **F29** cell indicates the *Total Equity*.

**Read More:** **Balance Sheet Format in Excel for Proprietorship Business**

## Conclusion

To conclude, I hope you found in this article what you were looking for. If you have any queries, please leave a comment below. Also, if you want to read more articles like this, you can visit our website **ExcelDemy**.

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