Create Projected Balance Sheet Format for Bank Loan 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. Sometimes organizations need to show a projected balance sheet to get loans from the bank. In this article, I will show you how to create a projected balance sheet for bank loan in Excel format.


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Introduction to Projected Balance Sheet

Projected balance sheets, also known as pro forma balance sheets, are statements that 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: Equity is the portion of a business that belongs to the owner. This is the difference between assets and liabilities.


3 Steps to Create Projected Balance Sheet Format for Bank Loan in Excel

In this article, I have divided the process of creating a projected 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. This is what it looks like.

Outline


Asset

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.

Outline for asset projected balance sheet for bank loan in excel format


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.


Owner’s Equity

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

outline for equity projected balance sheet for bank loan in excel format

Read More: How to Create Common Size Balance Sheet in Excel


Step 2: Write Down Information about Asset

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


Asset

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


Liabilities

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

information projected balance sheet for bank loan in excel format


Owner’s Equity

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

Read More: How to Create a Balance Sheet for Small Business in Excel


Similar Readings


Step 3: Calculate Total Asset, 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 C15 and write down the following formula
=SUM(C10:C14)

Asset Calculation information projected balance sheet for bank loan in excel format

  • Then, press ENTER to get the output.

  • Similarly, calculate the total current asset for the projected period and the total fixed asset for both the current and projected period.

Asset Calculation information projected balance sheet for bank loan in excel format

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

  • Go to C25 and write down the following formula
=C15+C22

Liabilities Calculation information projected balance sheet for bank loan in excel format

  • Then, press ENTER to get the output.

  • Similarly, calculate the total assets for the projected period.

Asset Calculation information projected balance sheet for bank loan in excel format

  • Next, we will calculate the liabilities just like the assets.

Liabilities Calculation information projected balance sheet for bank loan in excel format

  • Equity calculation will follow the same way.

  • The balance sheet includes total liabilities and owner’s equity. So we will now calculate that.
  • Go to C53 and write down the following formula
=C42+C51

  • Then, press ENTER to get the output.

Liabilities and Equity Calculation information projected balance sheet for bank loan in excel format

  • Do the same for the projected period.

Liabilities and Equity Calculation information projected balance sheet for bank loan in excel format

Read More: Balance Sheet Format in Excel with Formulas (Create with Easy Steps)


Things to Remember

  • The total asset will equal the sum of total liabilities and equity.
  • Projected values are based on forecasts.

Conclusion

In this article, I have explained how to create a projected balance sheet for bank loan in Excel format. 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.


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

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