Year End Accounts Balance Sheet Flashcards
What is it for?
Lists all of the firms assets and liabilities
TOTAL ASSETS equals TOTAL LIABILITIES
Content
.Employment of Capital - what the money is tied up in
.Capital Employed - how much is invested
.ASSETS less LIABILITIES equal CAPITAL
.Capital is a liability to the owner
.Assets - fixed and current
.Liabilities - current (repaid in next 12 months) and long term
Capital Recorded - sole practioner
. Balance on capital ledger LESS balance on drawings ledger ADD to net profit on P&L
. Capital - Drawings + Profit = Capital
Capital Recorded - partnership
. Note to balance - details of movement on partners Current Accounts
. Balance on Current Account ADD entitlement to Profit (copied from Appropriation Section) LESS balance on Drawings ledger gives new Current Account Balance
. Current Account - Drawings + Profit Share = new balance Current Account
Balance Sheet - sole practitioner
Balance Sheet for X as at 30/9/20
EMPLOYMENT OF CAPITAL
Fixed Assets
Fixed Asset A 20,000
Fixed Asset B 10,000
30,000
Current Assets
Current Asset A 600
Current Asset B 500
1100
Less Current Liabilities
Current Liability A 100
Current Liability B 50
(150)
Net Current Assets 950
Total Assets less Current Liabilities 30,950
Less Long Term Liabilities
Long Term Liability A 5,000
Long Term Liability B 3,000 (8,000)
Total 22,950
CAPITAL EMPLOYED
Capital
Opening Balance 22,000
Plus Net Profit 5,000
Less Drawings (4,050)
Total 22,950
Balance Sheet - partnership
Balance Sheet for X as at 30/9/20
EMPLOYMENT OF CAPITAL
Fixed Assets
Fixed Asset A 20,000
Fixed Asset B 10,000
30,000
Current Assets
Current Asset A 600
Current Asset B 500
1100
Less Current Liabilities
Current Liability A 100
Current Liability B 50
(150)
Net Current Assets 950
Total Assets less Current Liabilities 30,950
Less Long Term Liabilities
Long Term Liability A 5,000
Long Term Liability B 3,000 (8,000)
Total 22,950
CAPITAL EMPLOYED
Capital Accounts
Partner A 10,000
Partner B 5,000
15,000
Current Accounts
Partner A 5,000
Partner B 2950
7,950
Total 22,950
NOTE TO BALANCE SHEET - DETAILS OF MOVEMENT ON PARTNERS CURRENT ACCOUNTS
Partner A Partner B Opening Balance 10,000 5,000 Int on capital 500 250 Salary 10,000 10,000 Profit Share 800 400 Less drawings (16,300) (12,700) Closing Balance 5,000 2,950
Company - balance sheet
Balance Sheet for X as at 30/9/20
EMPLOYMENT OF CAPITAL
Fixed Assets
Fixed Asset A 20,000
Fixed Asset B 10,000
30,000
Current Assets
Current Asset A 600
Current Asset B 500
1100
Less Current Liabilities
Current Liability A 100
Current Liability B 50
(150)
Net Current Assets 950
Total Assets less Current Liabilities 30,950
Less Long Term Liabilities
Long Term Liability A 5,000
Long Term Liability B 3,000 (8,000)
Total 22,950
CAPITAL AND RESERVES
Share Capital 22,000
Retained profit/reserves 9,500
Total 22,950
