What Is a Balance Sheet Account?

The balance sheet account is a kind of record form for recording shareholders' debt income. It has the advantage of clear identification of the identity relationship between assets, liabilities and equity.

Balance sheet account

The account type is also known as the horizontal type, and its asset items are listed on the left side of the report in a certain order.

The assets in the balance sheet should separately display the following information items: (1) monetary funds; (2) financial assets measured at fair value and whose changes are included in the current profit and loss; (3) receivables; (4 ) Advance payments; (5) inventory; (6) non-current assets classified as unique for sale and assets in disposal groups held for sale; (7) financial assets available for sale; (8) Held-to-maturity investments; (9) long-term equity investments; (10) investment real estate; (11) fixed assets; (12) biological assets; (13) intangible assets; (14) deferred income tax assets;

Liabilities

1 short-term loans

2 Financial liabilities at fair value through profit or loss

3 Payables

4 advance payment

5 Payable to employees

6 taxes payable

7 Liabilities in disposal group classified as held for sale

8 Long-term loans

9 bonds payable

10 long-term payables

11Estimated liabilities

12 Deferred income tax liabilities

Owner's equity

1 Paid-up capital or equity

2 Capital reserve

3 surplus reserve

4 Undistributed profits

The account balance sheet is also called horizontal balance sheet. It uses the accounting balance formula of assets = liabilities + owner's equity to list various items in the form of accounts, that is, the individual assets are listed on the left side of the statement. The amount of the project, and the amount of each item of the debt category and owner's equity are listed on the right, and the amounts on the left and right sides of the balance sheet are balanced. China's accounting practice uses account-type balance sheets.