The balance sheet provides an overview of the distribution of capital. On one side states what the capital is used for and the other side states where the capital originates (who it belongs to). A balance sheet is a snapshot. It states the situation at a specific moment (unlike the Cash-flow statement and the P/L). An important balance is the opening balance at the start of the company and the balance sheets just before and after new shareholders come on board.
Example of a simple balance sheet:
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