[Solved] Sole Trader Balance Sheet Example

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                        In today's post, we will solve a sole trader balance sheet example with all information.

Running a business as a sole trader requires a keen understanding of financial management in which the balance sheet stands tall. If you are an accounting student and make a balance sheet for a solo trader then this example will help you.

Importance of Maintaining a Balance Sheet for Sole Traders

Before I explain the example of a sole trader's balance sheet, let me explain what are the important points I should check to solve this example.

Aspect	Description
Identifying Assets	Listing assets and accurately valuing them form the foundation of the balance sheet.
Calculation of Liabilities	Clear identification and calculation of liabilities help in ascertaining the actual obligations.
Determination of Equity	Equity calculations involve subtracting liabilities from assets and highlighting the owner's investments.

Sole Trader Balance Sheet Example

Balance Sheet of a Sole Trader

Assets		Liabilities & Equity
Current Assets:		Current Liabilities:
Cash	20,000	Accounts Payable	8,000
Accounts Receivable	15,000	Short-Term Loans Payable	5,000
Inventory	25,000
Prepaid Expenses	3,000
Total Current Assets	63,000	Total Current Liabilities	13,000
Non-Current Assets:		Non-Current Liabilities:
Equipment	30,000	Long-Term Loans Payable	20,000
Furniture & Fixtures	15,000
Total Non-Current Assets	45,000	Total Non-Current Liabilities	20,000
Total Assets	108,000	Total Liabilities	33,000
Owner's Equity:
Capital (Investment)	75,000
Retained Earnings	0
Total Owner's Equity	75,000
Total Liabilities & Owner's Equity	108,000	Total Liabilities & Owner's Equity	108,000

I hope you can find Assets, Liabilities, and Owner's Equity.

In this given example total assets ($108,000) are equal to total liabilities (Assets = Liabilities + Owner's Equity).

Conclusion

Here in this post, we solve a sole trader balance sheet example so if you are an accounting student then you should read this post till the end.