In simple words, balance sheet accounts are accounts that are carried forward to the next accounting period and are not closed i.e. transferred to or reported in income statement.
- Assets e.g. non-current assets accounts and accumulated depreciation accounts
- Liabilities e.g. loan account and payables account
- Owners’ equity e.g capital and drawings account
The balance at the end of the accounting period in balance sheet accounts is reported in the balance sheet hence the name balance sheet accounts and the next period’s accounts are opened with these brought forward balances that are treated as “opening balances” for the next period.