The balance sheet provides a summary of the assets and liabilities of a business. It is a snapshot of those assets at a particular moment in time.
The balance sheet always balances because of the use of "double-entry" bookkeeping to record business transactions.
Every transaction in a business always has two equal effects on the assets and liabilities of a business. Some examples are shown below.
Have you seen the tutor2u YouTube channel? Subscribe now and never miss a revision video!