Hello in this lecture we’re going to be creating the equity section of the balance sheet. In prior lectures, we have taken a look at the current assets section, the property plant and equipment section and then the liability section. This will be rounding out the balance sheet where we will finally get to total assets being equal to total liabilities and equity represent in the double entry accounting system. In terms of the balance sheet in terms of the accounting equation, we of course, are pulling these numbers from the adjusted trial balance. the adjusted trial balance also represents the double entry accounting system. However, it represents that double entry accounting system in the format of the building blocks of debits and credits. All we’re doing is taking those building blocks in terms of debits and credits, rearranging them to the accounting equation, so that readers who don’t understand debits and credits can then read them. Now when we look at the equity section, this is a bit confusing when we convert from the trial balance to the equity section.
