The Pineapple Pub

Preparing Simple Financial Statements

Scene 95 / of 100

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 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:   11800
ASSETS:    
Non-current Assets (fixed):    
   Furniture 18000  
   Total Non-current Assets:
 		   18000
Current Assets:    
   Bank 40600  
   Debtor - Hampstead Heath Party Hire 0  
   Closing Stock 5000  
   Total Current Assets:
 		   45600
TOTAL ASSETS:   63600
LIABILITIES:    



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