Chapter 1
Financial Statements: Personal Accounting
22
Personal Balance Sheet
As at April 30, 2016
Personal Income Statement
For the Month Ended April 30, 2016
ASSETS (what we own)
LIABILITIES (what we owe)
CASH
PREPAID INSURANCE
CONTENTS OF HOME
HOUSE
+
+
+
+
–
–
–
–
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
$1,000
$1,500
$90,000
$0
$65,500
$0
$6,000
$150,000
$5,700
$3,050
$89,100
$4,000
$66,300
$1,200
$7,400
$150,000
2,500
4,000
800
1,200
1,400
1,200
1,000
400
150
1,400
6. 900
4. 4,000
5. 800
1.
4.
5.
2.
7.
2.
6.
8.
3.
7.
UNPAID ACCOUNTS
MORTGAGE
BANK LOAN
NETWORTH
+
+
+
+
–
–
–
–
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
$2,500
1. 2,500
REVENUE
+
–
DECREASE
INCREASE
ENTERTAINMENT EXPENSE
FOOD EXPENSE
INSURANCE EXPENSE
INTEREST EXPENSE
+
+
+
+
–
–
–
–
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
LESS EXPENSES
3. 150
8. 400
6. 100
$2,500
650
$1,850
$150
$400
$100
Total Revenue
Less: Total Expenses
Equals Surplus (Deficit)
Total Assets
Net Worth*
* Ending NetWorth = Beginning NetWorth + Capital + Surplus (Deficit)
$68,150 = $65,500 + $800 + $1,850
Total Liabilities
$164,300
96,150
68,150
$164,300
1
2
4
3
2
______________
FIGURE 1.37
For the net worth calculation at the bottom of the balance sheet, we start with the the opening net
worth of $65,500 and add the lottery winnings of $800. Since we show a surplus of $1,850 from
the income statement, we will add this to net worth. This gives us a closing net worth balance of
$68,150. Note that if we had a deficit on the income statement, this would be subtracted from net
worth.
