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Personal Balance Sheet

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A personal balance sheet of any individual or person lists out his/her total assets and liabilities on a particular date. The balance sheet shows your assets such as cash in hand and bank accounts including savings/current accounts, properties like house, car, and furniture etc., marketable securities like shares and bonds. Liabilities include debts, mortgage debts, long-term liabilities such as housing loan, personal loan etc. The difference between your total assets and total liabilities is your net personal worth.Once you prepare a personal balance sheet, you can be in a position to determine you net worth. Calculating your net worth is very important step in order to uncover what assets and liabilities are held by you as on a particular date.You need to update each and every element of balance sheet in accordance with transactions taken place during the whole year, in order to find out a fair and exact position of your firm or yourself as a individual person. It brings the dynamism in the books of accounts and will depict more real and factual picture of the personal balance sheet as well as quantifies the Net Worth accurately.

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