How to fill in this financial statement
- 1Business name
e.g. Mercado General Merchandise - 2Business address
e.g. Public Market Road, Brgy. Poblacion, San Jose, Nueva Ecija - 3TIN line
e.g. NON-VAT REG. TIN 214-563-870-00000 - 4Period end
e.g. December 31, 2025 - 5Cash on hand and in banks
e.g. 186,450.00 - 6Capital, beginning
e.g. 350,000.00
What goes where
A balance sheet is a picture of the business on one day. What it owns (assets) always equals what it owes (liabilities) plus what the owner has in it (equity). The check line under the table tells you if yours does.
- Current assets: cash on hand and in banks, what customers owe you, inventory at cost, rent or insurance paid in advance.
- Property and equipment: cost less accumulated depreciation, as one net figure.
- Current liabilities: suppliers to pay, the part of loans due within a year, taxes and SSS/PhilHealth/Pag-IBIG still to remit.
- Equity: capital at the start, plus this period's net income from the income statement, less the owner's drawings.
When it does not balance
The difference on the check line is the clue. A difference equal to one figure means a line was missed; a difference divisible by 9 usually means two digits were swapped; twice a figure means it was put on the wrong side. Fix the books, not the balance sheet — never plug the difference into equity.
Questions people ask
Where does net income in equity come from?
From the income statement for the same period. Make the income statement first (the other version of this paper), then copy its net income here. If the business lost money, type the loss with a minus sign.
Is this an audited financial statement?
No. It is prepared by management — the owner or the bookkeeper — from the business's own books, and the paper says so. Audited statements carry an independent CPA's report and are signed by the CPA. Use this for a bank or supplier, for your own review, or as the draft your CPA works from.
When does the BIR require audited statements?
Under the Tax Code as amended by the TRAIN law, a business whose gross annual sales or receipts exceed PHP 3,000,000 must attach financial statements audited by an independent CPA to its annual income tax return. Corporations also file with the SEC under its own thresholds. Below PHP 3,000,000, statements certified by the owner are generally accepted — check with your RDO or accountant.
Can a bank use this for a loan?
Many banks and lending companies accept management-prepared statements from small borrowers together with the BIR-stamped income tax return and bank statements. Bigger loans usually need audited ones.
Can I save it and update it next year?
Save it to My Desk. Next period open it, change the figures and the date, and download. Saved papers are encrypted — we never read them.
This page explains common practice and is not legal advice. Offices set their own rules — when in doubt, call ahead or ask your notary or lawyer.