How is comparative balance sheet is prepared?

A comparative balance sheet is prepared by listing financial data from two or more periods side by side for easy comparison. First, the balances of assets, liabilities, and equity are gathered from the balance sheets of the relevant periods. Then, these figures are organized in a structured format, typically with the most recent period on one side and the earlier period on the other. Finally, percentage changes or dollar changes can be calculated to highlight trends and variations in financial position over time.