Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash...

4
Balance sheet as at 01/04/11 $000 $000 $000 Fixed assets 500 Current assets: •Stock 50 •Debtors 150 •Cash 100 300

Transcript of Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash...

Page 1: Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash 100 300.

• Balance sheet as at 01/04/11 • $000 $000 $000• Fixed assets 500• Current assets: • Stock 50• Debtors 150• Cash 100• 300

Page 2: Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash 100 300.

• Less current liabilities:• Creditors 140• Bank overdraft 20 160• Working capital or – net current asset [300-160]

140• Net assets 640

Page 3: Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash 100 300.

• Represented by:• Shareholders’ fund• (owners’ equity) • Share capital 250• Reserves: • retained profit 190

440

Page 4: Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash 100 300.

• Long term liabilities:• Debentures 150• Bank loan 50 200• Capital employed 640•  • Net Assets = Capital employed: the two parts

MUST always balance. • Remember, a balance sheet shows what a company

owns (assets), what it owes (liabilities) and where the company got its money (capital) from at a given date.

•