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 section’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.

**Read More: **How to Calculate Running Balance Using Excel Formula

**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.

**Read More: **How to Prepare Balance Sheet from Trial Balance in Excel

**Things to Remember**

- Make sure you have inserted the right data.
- Make sure about the amount before inserting that it’s a liability or asset.
- The difference must be zero for a perfect calculation.

**Download Practice Workbook**

You can download the free Excel workbook from here and practice on your own.

**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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- Calculate Debit Credit Running Balance Using Excel Formula
- How to Make Profit and Loss Account and Balance Sheet in Excel
- How to Make Trial Balance in Excel
- How to Make Stock Balance Sheet in Excel
- How to Make Projected Balance Sheet in Excel

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