Balance Sheet Equation Balancer A Equals L Plus E Tool

Reconcile actual signed statement account sections A−L−E including contra balances and caller tolerance; equation agreement is not assurance that statements are complete or correctly valued.

Description

The accounting equation compares net assets with net liabilities plus equity.

The accounting equation compares net assets with net liabilities plus equity. Signed contra accounts belong in their supplied sections.^[1]

The returned values include Net assets minor, Net liabilities minor, Net equity minor, Signed accounting equation residual minor, Accounting equation within tolerance. The How section below explains the calculation, input rules and interpretation.

When to use Balance Sheet Equation Balancer A Equals L Plus E Tool

Use Balance Sheet Equation Balancer A Equals L Plus E Tool when you need to evaluate the supplied records under the calculation and evidence rules below. No completeness, classification, valuation or statement assurance follows from equation agreement.

Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.

How to use Balance Sheet Equation Balancer A Equals L Plus E Tool and understand its results

Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
Enter signedAssetBalancesMinor, signedLiabilityBalancesMinor, signedEquityBalancesMinor, callerToleranceMinor using the field table and calculation rules, then run the tool.
Read netAssetsMinor, netLiabilitiesMinor, netEquityMinor, signedAccountingEquationResidualMinor, accountingEquationWithinTolerance. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
signedAssetBalancesMinor	Signed asset balances minor	list of number	Required
signedLiabilityBalancesMinor	Signed liability balances minor	list of number	Required
signedEquityBalancesMinor	Signed equity balances minor	list of number	Required
callerToleranceMinor	Caller tolerance minor	number	Required

Enter three signed safe-integer minor-unit lists and nonnegative safe-integer tolerance. Lists may be empty. Return checked net section totals, signed residual and inclusive absolute-tolerance flag.

residual=sum(assets)−sum(liabilities)−sum(equity)

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
netAssetsMinor	Net assets minor	number
netLiabilitiesMinor	Net liabilities minor	number
netEquityMinor	Net equity minor	number
signedAccountingEquationResidualMinor	Signed accounting equation residual minor	number
accountingEquationWithinTolerance	Accounting equation within tolerance	boolean

json

{
  "input": {
    "signedAssetBalancesMinor": [
      1000,
      -100
    ],
    "signedLiabilityBalancesMinor": [
      400
    ],
    "signedEquityBalancesMinor": [
      500
    ],
    "callerToleranceMinor": 0
  },
  "output": {
    "netAssetsMinor": 900,
    "netLiabilitiesMinor": 400,
    "netEquityMinor": 500,
    "signedAccountingEquationResidualMinor": 0,
    "accountingEquationWithinTolerance": true
  }
}

Limitations and assumptions

No completeness, classification, valuation or statement assurance follows from equation agreement.

Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries and string lists to 128 entries of at most 128 characters. Follow any smaller limits above. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.

Alternative or Complementary methods

Use Classified Balance Sheet Section Sorter: A classified balance sheet needs explicit section annotations. Signed contra balances and unknown classifications must remain visible. For a complementary task, use Trial Balance Debits Credits Checker: A trial balance groups debit-positive signed account balances into debit and credit totals. Matching totals does not establish ledger completeness.

References

Balance Sheet Equation Balancer A Equals L Plus E Tool — tool.io

Similar or alternative tools

Classified Balance Sheet Section Sorter
A classified balance sheet needs explicit section annotations. Signed contra balances and unknown classifications must remain visible.
Trial Balance Debits Credits Checker
A trial balance groups debit-positive signed account balances into debit and credit totals. Matching totals does not establish ledger completeness.