LC Legal Assistance

06/24/2026

04/23/2026

📊 Balance Sheet — Clear Explanation + Example
What is a Balance Sheet?

A balance sheet is a financial statement that shows the financial position of a business at a specific point in time. It tells you:
What the business owns (assets)
What the business owes (liabilities)
The owner’s stake (equity)
It is based on the fundamental accounting principle:
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This equation must always balance — hence the name balance sheet.
Key Components

1. Assets (What the business owns)
Assets are resources with economic
value:
Cash
Inventory (goods for sale)
Equipment
Buildings

👉 Two types:
Current Assets (short-term): Cash, stock
Non-current Assets (long-term): Land, machinery

2. Liabilities (What the business owes)
Liabilities are debts or obligations:
Loans
Creditors (suppliers you owe)
Bills payable

👉 Types:
Current Liabilities: Paid within a year
Long-term Liabilities: Paid over many years

3. Equity (Owner’s interest)
Equity represents what belongs to the owner:
Capital invested
Retained profit

🧾 Example of a Balance Sheet
Business Name: Bright Traders
Date: 31 December 2025
Assets
Amount (₦)
Cash
50,000
Inventory
30,000
Equipment
20,000
Total Assets
100,000
Liabilities
Amount (₦)
Loan
40,000
Creditors
10,000
Total Liabilities
50,000
Equity
Amount (₦)
Owner’s Capital
50,000
Total Equity
50,000

✔️ Check:
Assets = ₦100,000
Liabilities + Equity = ₦50,000 + ₦50,000 = ₦100,000

✅ The balance sheet is correct because both sides are equal.

🧠 Simple Way to Remember
Assets = What you have
Liabilities = What you owe
Equity = What is yours
Financial accounting & commerce
Economics & accounting

04/14/2026

We’re pleased to partner with AFRO-African Family Revival Organization to host Drop-In Legal Clinics throughout 2026!

Join us monthly in Kitchener to get free legal support—no appointment needed.

📍 AFRO, 737 Belmont Ave. W, Suite 4
📅 Starting April 23

For more information, please contact AFRO at (548) 889-3506 or [email protected]

03/27/2026

03/11/2026

Contact me for corporate legal assistance.

02/25/2026

Are you incorporated? Are you filing your Returns?? Not tax returns, Annual Returns. It is required by law. I can help.

02/16/2026

My service is also available to the public. Are you ready to incorporate? Need records updated?

Are you a lawyer in Ontario looking to expand your business/corporate practice but don't have the support ? I can help.

02/16/2026

Are you a lawyer in Ontario looking to expand your business/corporate practice but don't have the support ? I can help.