Left = Right …Always
Left
- Assets
- Receivables (we will get money soon)
Right
- Equity
- Payables (we will pay money soon)
- Liabilities
31.12. = 1.1.
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this is always true, except…
-
there was an error
-
if in the previous year there was a grave error the opening balance sheet (1.1.) is corrected
-
an already created balance sheet of last year (31.12.) is never touched again