Having now considered and classified all the items appearing on the trial balance, the preparation of the balance sheet is a simple matter, provided its nature and purposes are clearly understood. The balance sheet may be said to consist of the figures obtained above, arranged in a logical manner. There are, however, certain points in regard to this arrangement which require some discussion and which will therefore be taken up in Chapter XXVIII (The Balance Sheet, The Annual Report, And Schedules. Section 272. Nature Of The Balance Sheet).