Course · 25 min read

Understanding the Balance Sheet Statement (Part 1)

Karthik Rangappa, Zerodha Varsity · zerodha.com Free Beginner India

Varsity's line-by-line reading of an Indian company's balance sheet, starting with the liabilities side: shareholders' funds, share capital, reserves and surplus, and current and non-current liabilities.

  • The balance sheet always balances: assets equal liabilities plus shareholders' funds.
  • Share capital = face value x number of shares; 1,000 shares of Rs 10 is Rs 10,000.
  • Reserves and surplus is where the company's accumulated profits sit.
Open on zerodha.com ↗

The question it answers

  1. How do I read a P&L, balance sheet, and cash flow statement?

Read with it

  1. The most accessible book for non-finance founders on reading a P&L, balance sheet, and cash flow statement. It demystifies the... hbr.org Book · book (~304 pages) Financial Intelligence for Entrepreneurs Karen Berman & Joe Knight
  2. Varsity's line-by-line reading of an Indian company's profit and loss statement: revenue, other income, expenses and how they... zerodha.com Course · 20 min read Understanding the P&L Statement (Part 1) Karthik Rangappa, Zerodha Varsity
  3. The second half of Varsity's balance sheet walkthrough, covering the assets side: fixed assets, investments, inventory,... zerodha.com Course · 20 min read Understanding the Balance Sheet Statement (Part 2) Karthik Rangappa, Zerodha Varsity
  4. Varsity's explanation of the cash flow statement in three parts, operating, investing and financing, and why profit and cash... zerodha.com Course · 20 min read The Cash Flow Statement (Varsity) Karthik Rangappa, Zerodha Varsity
  5. A thorough plain-English course on the balance sheet: current and long-term assets and liabilities, equity, and how it connects... accountingcoach.com Article · 30 min read Balance Sheet (Explanation) Harold Averkamp, AccountingCoach
eChai Partner Brands The partnership →