The art and science of bookkeeping and accountancy is a complex one and is used widely in business, to record transactions and at the same time also assess and interpret them. The double entry system that is used in accountancy consists of complex mathematics, laws and rules that make the system work smoothly. There are several personal financial statement drafts that can be depicted. However, instead of following complex procedures, following three financial statements is much easier and also quite resourceful.
- General Journal
- Cash Flow
- Balance Sheet
General Journal
The general journal is a two-fold statement which has two slabs. The first slab shall consist of all the expenditures and the second slab shall consist of all the incomes. When you have a personal financial statement the problem is that the number of incomes that you receive tend to be relatively less and are also periodic, unlike a business firm where the incomes exist on a daily basis. For example, the salary income can be shown only once a month. While making the statement, make columns with heads such as '$...', 'food', 'electricity', 'coffee', etc. You can decide what the head of the column should say and there is no hard and fast rule for the same.
| General Journal for the Month of January | ||||||||||
| Expenditures | Fuel | Electricity | Food and Drink | Medical | Premiums of Insurance | Rent | Tax | Repairs | Phone bill | Other Expenses |
| $... | $... | $... | $... | $... | $... | $... | $... | $... | $... | |
| $... | $... | $... | $... | $... | $... | $... | $... | $... | $... | |
| Incomes | Salary | Interest | Returns on Investments | Returns from Insurance | Dividends and Returns from Stock | Money market Incomes | Bonus | Income from Real Estate | Income for Mutual Funds | Other incomes |
| $... | $... | $... | $... | $... | $... | $... | $... | $... | $... | |
| $... | $... | $... | $... | $... | $... | $... | $... | $... | $... | |
The last column and row can, of course, be the total expenditure and income of the month. Go on filling the columns and rows on a daily basis. Though this template does not contain the thirty or thirty-one days of the month, you may include them in your personal financial statement.
Cash Flow
Next off, for the cash flow, where you can write the total expenditures and incomes for the month. Note the heads that you used in the general ledger. This goes as follows:
| Cash Flow for the Month of January | ||
| Total Expenditures | Fuel | $... |
| Electricity | $... | |
| Food and Drink | $... | |
| Medical | $... | |
| Premiums of Insurance | $... | |
| Rent | $... | |
| Tax | $... | |
| Repairs | $... | |
| Phone Bill | $... | |
| Other Expenses | $... | |
| Specifications | ... | |
| Total | $... | |
| Total Incomes | Salary | $... |
| Interest | $... | |
| Returns on Investments | $... | |
| Returns from Insurance | $... | |
| Dividends and Returns from Stock | $... | |
| Money market Incomes | $... | |
| Bonus | $... | |
| Income from Real Estate | $... | |
| Income for Mutual Funds | $... | |
| Other incomes | $... | |
| Specifications | ... | |
| Total | $... | |
Balance Sheet
The last personal financial statement is the balance sheet. This is basically a two column statement where the assets are written to the right and the liabilities to the left. Note that some aspects of the cash flow and general journal affect the balance sheet. This statement can be made on a monthly or annual basis.
| Balance for the Month of January | |||
| Liabilities | Amt | Assets | Amt |
| Secured Loan | $... | Real Estate Market Value | $... |
| Unsecured Loan | $... | Bank Balance | $... |
| Credit Cards | $... | Cash Balance | $... |
| Due Installments | $... | Automobile market cost | $... |
| Due Premiums for Insurance | $... | Investment in Stocks | $... |
| Due Bills | $... | Insurance Accrual | $... |
| Bank Overdraft | $... | Mutual fund accrual | $... |
| Amount Payable in Stock Market | $... | Home related Personal Assets | $... |
| Amount Payable in Money Market | $... | Jewelry | $... |
| Other Liabilities | $... | Other Assets | $... |
| Total | $... | Total | $... |
You can use these personal financial statement templates as they are, or you can modify them as per your requirement. The totals of all the amounts will give you an overview of the income and expenditure that you incur every month.
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