Patricia Green's Organic Fruit and Vegetable Stall

Preparing Simple Financial Statements

Scene 55 / of 60

Preparing the Balance Sheet - Establishing the Liabilities - Owners Capital

The first section of "Liabilities" represents the owner. Select the capital figure from the trial balance. Also check to see if the owner has made any drawings which would reduce his capital. Finally select the profit or loss for the period.

Capital is increased by the net profit generated in the trading period, if there is a loss capital would be reduced by the loss figure.


Account DEBIT CREDIT
Bank Account 2050  
Capital Account   2000
Creditor - Retail Displays Account   300
Equipment Account 300  
Furniture Account 200  
Insurance Account 180  
Purchases Account 600  
Rent Account 150  
Sales Account   1180
  3480 3480
     


Income from Sales:    
   Sales 1180  
   Net Sales:
 		   1180
Cost of Sales:    
   Purchases 600  
   Total Cost of Sales:
 		   600
GROSS PROFIT:   580
Other Income:    
   Total Other Income:
 		   0
Expenses:    
   Insurance 180  
   Rent 150  
   Total expenses:
 		   330
NET PROFIT:   250
ASSETS:    
Non-current Assets (fixed):    
   Equipment 300  
   Furniture 200  
   Total Non-current Assets:
 		   500
Current Assets:    
   Bank 2050  
   Total Current Assets:
 		   2050
TOTAL ASSETS:   2550
LIABILITIES:    



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