Balance Sheet Won't Balance


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My Balance Sheet won't balance, because my Assets are higher than my Liabilities plus Stockholders Equity.

In the assets section I have the following:

Cash: xxx
Website: xxx (this includes the cost to initially launch the site. Not ongoing expenses)
Operations Licenses: xxx
Personal Computers: xxx
Servers: xxx

However, I notice that when I take out everything EXCEPT for cash out of the Assets section, then the balance sheet balances correctly. I did deduct the expenses for the website creation, operations licenses, etc out of the P&L statement.


Should I somehow put these down as accrued expenses in the Liabilities section? How is that right because I have already paid for them.

Any help you could offer would be appreciated.

Thank you,

Mary
 
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Jun 13, 2010
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Mary, you don't say if the problem is a software problem or an accounting problem. If this is a software problem, then you need to check to see how your chart of accounts are set up.

If this is an accounting problem, then... You are correct on the equation, in that Assets = Liabilities + Equity.

So if you do not have any Liabilities, the the balancing amount must belong in the Equity section of the balance sheet.

I hope this helps.

Russell
 

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