accounts demystified you will see, even when we have entered all the transactions up As to our balance sheet date, we need to make various adjustments if the balance sheet is going to reflect the true financial position of the company. Bear in mind always that a balance sheet is only a snapshot at a particular moment ­ a few seconds later it will be different, even if only slightly. SBL's balance sheet SBL made well over a hundred transactions in its first year. Rather than go through every one of them, I have summarised them so we have a manageable number. I have also identified the three adjustments we need to make [Table 2.1]. Don't worry for the time being if you don't understand some of the things on this list ­ I will explain them as we go along. What we are going to do is look at the effect each of these transactions and adjustments has on SBL's balance sheet. We will do this using the balance sheet chart as follows: will draw one chart for each transaction or adjustment. We chart will show two balance sheets ­ the balance sheet imme- Each diately before the transaction/adjustment and the balance sheet immediately after the transaction/adjustment. will shade in the boxes that change due to each transaction or I adjustment. 14