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How an Art Student created her Balance Sheet with my help?

Recently one of my students requested me to coach her Tally.ERP 9 remotely. She was feeling nervous and told me that she is very confusing because she is graduated in Art stream and doesn’t know anything about accounts or commerce. Her confusion wasn’t an exceptional because, during my long-term accounting career, I have seen people scaring most for the  debit and credit in accounts.
I never teach people in the ordinary way like our professional coaching institutes. I design a special course for each of my student. To design special course for a student, first I talk with my student. I talks about what student likes. What is  the motive of the student in his/her life. Where he/she want to see himself/herself after a few years. This makes students feels comfortable with me. They talks with me about them and I can evaluate the student and can design the best way to teach him/her.
So, first I talked to her. I assured her I won’t talk with her about basic accounting rules or any debit and credit stuff because I hate this debit and credit stuff. I asked her if ever she have a chance to do business  then what type of business she would like to do ? I got an amazing idea from her. Then I explained her if she has to start a business she needs to understand the accounting principles and Balance Sheet is the best document to understand a Business’s  financial position.
Then I asked her Is she able to prepare her first balance sheet? Her reply was a big no with a surprising tone. I can understand that a person who never seen balance sheet how can it be possible for them to prepare a balance sheet? but  as I said, I teach differently and here is how She prepared her Balance Sheet with my help.
I said she can surely prepare her First balance sheet in just 20 minutes.
and within 20 minutes she prepared her first balance sheet and it was awesome. She was so happy and had a feeling of confidence that she too can learn accounts
So, how did she prepared her First Balance Sheet ?
It was very simple

How to Create your First Balance Sheet

I said her suppose I Vision Info Tech give her a loan of Rs. 20,000 then just list down the expenses she would like to spend ?
she make the list in excel. She is great in excel. and here is the list she prepared. I have advised her to show the loan amount in one side of the Excel Sheet and her planned expenses on the other side of the sheet

 

She made the list in excel now I asked her to add a column after the amount and bifurcate the expenses between recurring and nonrecurring. Some expenses we need to do every month or again and again monthly/weekly etc while some expenses we need to do only once or two times in a month
so, here is her list after bifurcating into recurring and nonrecurring expenses and name it as “Consolidated  Expenses Statement”
How to Create Balance Sheet

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The bifurcation she did was perfect Now how to prepare the Balance sheet on this bifurcate ?
I asked her to prepare two more statement in excel and take the items from the consolidated Statements based on the nature of expenses.
1) Recurring Expenses Statement
2) Non-Recurring Expenses Statement
and here are the statements prepared by her:
1) Recurring Expenses Statement
Recurrent Expenses

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2) Non-Recurring Expenses Statement
Non Recurrent Expenses

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now, as you can see that both sides of this statement are not matching!  One important rule of Balance sheet is that both of its sides must tally with each other. In other words, the total of both the side must be same.
In the Excel file which you can download from the below link, I have adjusted a difference of Rs. 3500.

 

 

 

So, What do you think? After reading the above tutorials do you still think you can’t prepare a balance sheet?

Let’s try it

I Vision Infotech is giving you Rs. 50,000 as a start-up capital as  an unsecured loan.

Now select your dream business line and make a list of expenses which you need to do to start your dream business then list down the same in Excel as shown in tutorials

Next, bifurcate them into recurring and non-recurring and prepare 2 statements accordingly. and your Balance Sheet is ready.

If you have any confusion, you can post your query in the comment section.

I am early waiting to see your first Balance Sheet

 

About the Author

Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site

Leave a Reply 5 comments

Raju seth - 11 months ago Reply

Hello sir, this is Raju, you do a great job

vijayalakshmi srinivassa - 10 months ago Reply

Hi am vijayalakshmi pls let me know the procedure to join n learn Tally from you in online. Pls guide me as am planning to join an accounts firm n am from a science background.

lakshmi - 9 months ago Reply

hi i want to join in ur tally online course plz guide me the procedure

Mahendra Rana - 9 months ago Reply

Hello Lakshmi,

Please visit the link Shop then Select the course you want to join and add it to cart.
Then complete the checkout. You can pay online. You will find the option to pay online. Follow the process and if you feel any confusion, please contact me. I will assist you.

Pallavi - 6 months ago Reply

HELLO SIR

I AM INRESTED IN YOUR CORUSE PLEASE GIDE TO ME

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