Balance sheets form a fundamental documentation of an individual, company, non profit organization or government department or agency showing the current financial condition of the entity. It includes a glimpse into the assets and liabilities of the entity. A balance sheet therefore gives a picture of the net worth of an entity.
Balance sheets generally have a very simple structure. Mostly the assets are listed out first. The different assets of the individual or company or agency are listed out in different headers. All the incomes come under this category. After this come the liabilities. All the loan, home loan or car loan or personal loan, etc. are liabilities.
Balance sheet of companies varies from a balance sheet of an individual in various aspects. The components included under assets and liabilities in case of a company or agency are greatly different when compared to that of an individual. A company account may include terms like suspense account which are generally not seen in the balance sheets prepared for the individuals.
In the end of the balance sheet there is always a total of the assets and the liabilities of the entity. This readily gives a fair idea of the financial condition of the entity.