I'm a freshman management student. And my prof in accounting teaches us at a very fast pace. I can't actually get what he is teaching--especially with balance sheets. I don't get the whole logic and the whole idea of why it should be put here and there in T-account.. Argh! I dont know!
submitted by Jessa Villegas

James

Hi Jesse,I would recommend checking out Bean Counting 101 because it offers a great visual demonstration of how balance sheet works.Alternatively, you can perform transactions and watch how it affects a balance sheet with the Interactive Financial Statement.

EG

The best way to understand balance sheets is to understand the different types of accounts:

Assets
Liability
Equity
Income
Expenses

Based on these accounts you build your general ledger and financial statements