# How to Tally a Balance Sheet in Excel

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For every kind of business, making a balance sheet is mandatory. Because it gives you a clear idea and output of your business. And if any mistake occurs in the calculation then the balance sheet can detect it. I hope this article will be a proper guide to tally a balance sheet in Excel with vivid illustrations.

## What Is a Balance Sheet?

A balance sheet is a financial document that can express the connection between a companyâ€™s assets, liabilities, and shareholder equity at a specific time. It helps to calculate a companyâ€™s net worth. Along with the cash flow statement and income statement, it is another important statement that a company should keep.

Here is our sample balance sheet, in which Iâ€™ll show how to tally between the liabilities and assets using a companyâ€™s data.

## How to Tally a Balance Sheet in Excel: (with Easy Steps)

### Calculate Liabilities

Liability is the amount or obligation for which a company is liable. First, weâ€™ll calculate the total liabilities amount. There are three sections in this section. If you have more sections then add them here.

Steps:

• There is the capital of two persons, so weâ€™ll find the total capital using the SUM function. Apply the following formula in Cell D7
`=SUM(C6:C7)`
• Hit the Enter button and you will get the total.

• Then place the loan amount. As there is only one loan amount, weâ€™ll insert it directly as the total in Cell D9. So, type the following formula and hit the ENTER button.
`=C9`

• Now, weâ€™ll calculate the other current liabilities. I have shown three current liabilities, if you have more then add them in this section. To sum them up, insert the following formula in Cell D13
`=SUM(C11:C13)`
• Later, press the Enter button to get the total.

The amounts of all the sectionâ€™s liabilities are calculated. Now letâ€™s find the total liabilities amount.

• In Cell D18, write the following formula:
`=SUM(D6:D13)`
• Then just hit the Enter button to finish.

Read More: How to Keep a Running Balance in Excel

### Calculate Assets

Assets are the resources that a company holds, they can be property, equipment, cash, etc. Now weâ€™ll calculate the total assets. It has also three sections. If you have more sections then add them here.

Steps:

• In the Motor Vehicle section, there is a depreciation so to find the net amount weâ€™ll subtract it from the Opening Balance using a manual formula. The formula will be as follows-
`=G6-G7`
• Hit the Enter button to find the output.

• There are depreciation and additions in the next Office Equipment section. So weâ€™ll add and subtract them from the Opening Balance to find the net amount here. Type the formula as follows:
`=G9+G10-G11`
• Donâ€™t forget to press the Enter button to get the output.

• We have some current assets here like, cash in hand, bank accounts, etc. Add them using the following formula-
`=SUM(G13:G16)`
• Press the Enter button to get the summed amount.

• All the individual assets are calculated. After that, apply the following formula to calculate the overall assets-
`=SUM(H6:H16)`
• Later, just press the Enter button.

### Calculate Difference

If the difference between the liabilities and assets gets zero then we can say that we havenâ€™t done anything wrong in our calculations, everything is all right. But if it becomes zero that means thereâ€™s something wrong in the data or calculations. Letâ€™s check it for our dataset.

Steps:

• Subtract the liabilities from the assets by inserting the following formula-
`=H18-D18`
• Finally, just hit the Enter button to finish.

Now have a look, it returns zero. So we have done nothing wrong.

## Things to Remember

• Make sure you have inserted the right data.
• Make sure about the amount before inserting that itâ€™s a liability or asset.
• The difference must be zero for a perfect calculation.

## Conclusion

I hope the procedures described above will be good enough to tally a balance sheet in Excel. Feel free to ask any question in the comment section and please give me feedback.

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Md. Sourov Hossain Mithun, an Excel and VBA Content Developer at Softeko's ExcelDemy project, joined in October 2021. Holding a Naval Architecture & Marine Engineering degree from BUET, Mithun showcases expertise during his two-year tenure. With over 200 published articles on Excel topics, he earned a promotion to Team Leader, excelling in leading diverse teams. Mithun's passion extends to Advanced Excel, Excel VBA, Data Analysis, and Python programming, contributing significantly to the innovative and dynamic environment of ExcelDemy... Read Full Bio

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