The profit and loss tells you how a period went. The balance sheet tells you where the pharmacy stands on one date: what it has, what it owes, and what belongs to the owner. The trial balance lists every account's balance on the same date, and it is the page your accountant or tax adviser will ask for. MediPOS produces both from the same books as everything else, so this guide explains how to read a pharmacy balance sheet and trial balance, and what to do if they ever disagree.
Both statements are the Balance sheet & trial balance module. If the Balance sheet and Trial balance tabs are missing from Accounts & books, your plan does not include it. The owner can see what each plan includes under Plan & billing.
How to open them
- Go to Money → Accounts & books.
- Click the Balance sheet or Trial balance tab.
- Both open on today. Change As on to any other date, for example 30 June for the end of the financial year, and the figures are worked out as they stood at the close of that day.
- Use Print for a clean copy.
How to read the balance sheet
The page has two sides. What the pharmacy has lists your assets. Where it came from lists Owed to others and Owner's share. Here is a typical medical store on 30 September:
| What the pharmacy has | Where it came from | ||
|---|---|---|---|
| Cash in hand | Rs 45,300 | Owed to others | |
| Bank account | Rs 2,12,000 | Supplier payable | Rs 3,90,000 |
| EasyPaisa | Rs 8,700 | Sales tax payable | Rs 3,500 |
| Customer udhaar (receivable) | Rs 64,500 | Owner's share | |
| Stock (inventory) | Rs 18,45,000 | Opening balances | Rs 15,00,000 |
| Owner's capital | Rs 2,00,000 | ||
| Owner's drawings | −Rs 60,000 | ||
| Profit to date | Rs 1,42,000 | ||
| Total assets | Rs 21,75,500 | Total | Rs 21,75,500 |
What each line means for a pharmacy:
- Stock (inventory) is everything on your shelves and in quarantine at cost. That is the landed cost from your purchase bills, with bonus schemes spread in. It is the same basis as the Cost value column of the Stock valuation report. For most pharmacies, this is by far the biggest asset.
- Customer udhaar (receivable) is the total your credit customers owe you. The receivables aging report breaks it down by customer.
- Supplier payable is what you owe distributors, the total of all supplier balances.
- Sales tax payable is tax you charged on bills and have not yet paid over.
- Opening balances holds everything you brought in on day one: opening stock, cash and bank, udhaar owed to you, less what you owed suppliers.
- Owner's capital and Owner's drawings come from money transfers. Drawings show as a minus, because money taken out reduces the owner's share.
- Profit to date is all the profit (or loss) since you started using MediPOS, up to the As on date.
A quick health check: take cash, bank, wallets and udhaar together, and compare them with supplier payable. In the example, Rs 3,30,500 of cash and money owed to you stands against Rs 3,90,000 owed to distributors. The shortfall is covered by stock that still has to be sold, which is normal just after a big order, but worth watching.
Why the two sides must balance
Every entry MediPOS posts has equal debits and credits. A sale adds cash and sales. A distributor bill adds stock and payable. A payment takes from the bank and from the payable. So the total of what the pharmacy has must always equal the total of where it came from. Below the balance sheet you should see The books balance. If the sides ever differ, MediPOS shows the difference and asks you to contact support. Do not try to fix it with a transfer.
How to read the trial balance
The trial balance lists every account with a balance: Code, Account, Debit and Credit. Assets and expenses normally sit on the debit side. What you owe, the owner's share and income sit on the credit side. The Total row must show equal debits and credits, confirmed by Debits equal credits. Accounts with nothing in them are left out.
Click any account on either page to open its ledger for the month up to the As on date. An accountant can use this to trace a figure, such as the cash, back to the individual sales and payments.
Rules and tips
- Both pages need Cash book, day book & accounts. They show the branch you are working in. People with All-branch reports can switch to All branches to see the whole business. The Offline edition has one branch.
- Everything dated on or before the As on date counts, even if it was typed in later. A bill entered on 3 July with a bill date of 28 June changes the 30 June balance sheet. Voids are dated on the day you void, so they do not change earlier dates.
- Nothing can be edited here. Wrong figures come from wrong documents, so void or reverse the document itself and the statements follow.
- A negative cash or bank figure on the balance sheet usually means an opening balance was never entered.
Common questions
Why is my stock figure so much bigger than my cash?
In a pharmacy most of the money is on the shelves. That is normal. Watch the slow-moving stock report for medicines that are not selling.
Which date should I use for my yearly accounts?
Use the last day of your financial year, usually 30 June, in As on. Print the balance sheet and trial balance for that date, together with the profit and loss from 1 July to 30 June.
The balance sheet shows Owner's drawings as a minus. Is that wrong?
No. Money the owner took out reduces what the business owes the owner, so it is shown as a deduction.
Does the balance sheet include udhaar from customers who never pay?
Yes. It counts everything customers still owe. Check the receivables aging report for old balances.
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Last updated 25 September 2026. Still stuck? Contact us.