The Balance Sheet shows the assets and liabilities of an organisation at a point in time. The Balance Sheet is divided in two. The top section representing assets the lower section representing liabilities or how the resources were funded. Both sections should be equal. The Balance Sheet is titled "Balance Sheet as at December 31".

Preparing the Balance Sheet - Establishing the Fixed Assets

Non-current Assets (fixed) should be presented first. Select any fixed assets in the trial balance.


Account DEBIT CREDIT
Bank Account 40600  
Capital Account   40000
Creditor - Flash Sales Limited Account   10000
Creditor - Kensington Supplies Limted Account   6000
Debtor - Hampstead Heath Party Hire Account    
Discount Allowed Account 200  
Drawings Account 4200  
Energy Expenses Account 3500  
Furniture Account 18000  
Leasing Expenses Account 3500  
Purchases Account 6000  
Rent Payable Account 20000  
Rent Receivable Account   4000
Sales Account   47000
Wages Account 11000  
  107000 107000
     


Income from Sales:    
   Sales 47000  
   Net Sales:
 
  47000
Cost of Sales:    
   Purchases 6000  
   Closing Stock 5000  
   Total Cost of Sales:
 
  1000
GROSS PROFIT:   46000
Other Income:    
   Rent Receivable 4000  
   Total Other Income:
 
  4000
Expenses:    
   Discount Allowed 200  
   Energy Expenses 3500  
   Leasing Expenses 3500  
   Rent Payable 20000  
   Wages 11000  
   Total expenses:
 
  38200
NET PROFIT / (LOSS):   11800
ASSETS:  
LIABILITIES:  



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