Balance sheets summarize every penny transferred between accounts in a company. When the fiscal period is over, your company's total assets must equal its total liabilities plus equity. Unused credit lines are "off-balance sheet" items because they have not yet been converted into assets and liabilities, and thus cannot be balanced within a typical balance sheet. Unused credit lines are noted in the footnotes of accounting documents to improve the perceived financial health of the company.
Create a "footnotes" section for your balance sheet at the bottom of the document. The footnotes section of your balance sheet lists any special information for investors and accountants to consider when analyzing the health of the company.
Label the footnote entry "Lines of Credit" or "Credit Lines." Include the name of the lending institution and the available credit amount. Include the terms of credit and the interest rate.
Match the footnote to any outstanding debts from the same credit line, if applicable. For example, if a bank extends a $100,000 credit line to your company, and you use only $20,000 of it, place an asterisk next to the notes payable balance so that it links to the $80,000 available in the footnote, as well as the terms and conditions.
