Balance Sheet vs Consolidated Balance Sheet

What is a Balance Sheet?

A Balance sheet is a precise representation of the assets, equity and liabilities of the entity. This is outlined by every enterprise, a partnership enterprise or sole proprietorship firm. It reveals the financial security of the enterprise.

There are three components of a Balance Sheet , namely assets (inventory, accounts receivable), equity (share capital, capital surplus) and liability (accounts payable, customer deposits).

What is a Consolidated Balance Sheet?

When assets, liabilities & equity of a firm and its subsidiaries are merged in a single report, then the report is called the Consolidated Balance Sheet. In other words, it is a fortification of the balance sheet of the enterprise along with its subsidiaries (departments).

Also Read Study Tips for Accountancy Exam

This article is a ready reckoner for all the students to learn the Difference between the Balance Sheet and the Consolidated Balance Sheet.

Parameters Balance Sheet Consolidated Balance Sheet
Meaning A Balance sheet is a precise representation of the assets, equity and liabilities of the entity. This is outlined by every enterprise, a partnership enterprise or sole proprietorship firm. It reveals the financial security of the enterprise. When assets, liabilities & equity of a firm and its subsidiaries are merged in a single report, then the report is called the Consolidated Balance Sheet. In other words, it is a fortification of the balance sheet of the origin enterprise with its subsidiaries (departments).
Preparation Simple and easy Difficult
Prepared by All the entities. Those enterprises which possess subsidiaries.

The above mentioned is the concept, that is elucidated in detail about ‘Difference between Balance Sheet and Consolidated Balance Sheet’ for the Commerce students. To know more, stay tuned to BYJU’S.

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