M21EKMtut3 (Sol) - Balance Sheet

8/10/2019 M21EKMtut3 (Sol) - Balance Sheet

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Tutorial: Balance Sheet

Tut 3.1

1S T O 2C

K 3 D R A W I N G S

R E

E B A N K

D T

I O!T

" R N O #$

E R

O E S

R %

& C A S % I

C'( I A B I

)( I T *

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$ E R % E A D S

I

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*

ACROSS DOWN

1. materials and goods required in order to produce for, and supply to, thecustomer

3. represent the salary taken out of anunlimited liability firm by its

proprietors.

4. along with cash, this is the mostliquid of assets.

5. is an abbreviation which means thesame as sales revenue

7. along with bank, this is the mostliquid of assets.

. a debt that may have to be paidwithin 1! months "current#, after 1!months "long$term#, or at nospecified time "shareholders% funds#.

1&. are costs that are not generateddirectly by the production process,often referred to as e'penses.

!. are those to whom the organisationowes money, perhaps through having

purchased goods or services on creditso that payment is still outstanding.

3. are the people who owe money.

(. a type of fi'ed asset.

). the ability of a firm to meet its short$term debts. *s bills can only be paidwith cash, this term can also beunderstood as the availability of cash or near cash resources.
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Tut 3.2

+oyce%s 'ecutive is a coach company based in +ugby in the -idlands. t is owned by/oshua 0uttall who used 3& &&& of his own money to set up the business in !&&&. 2hecompany runs day trips to tratford$ pon$*von and the otswolds and weekend e'cursionsto places such as 6ath, ork and 8ondon.

2he following details also relate to this company.

2hree coaches are owned by the company.

15 &&& is owed to the bank 9 2he +oyal 6ank of cotland

5 &&& is owed to /oshua%s mother

2here is (7 in +oyce%s bank account.

* customer owes +oyce%s 15 for a trip

+oyce%s own a computer worth 1 &&&

+oyce%s owe !5& to a local garage for diesel

*. :hich of the items below are +oyce%s fi'ed assets;

a. Three coache- are o ne/ 0 the co an .

b. 15 &&& is owed to the bank 9 2he +oyal 6ank of cotland

c. 5 &&& is owed to /oshua%s mother

d. 2here is (7 in +oyce%s bank account.

e. * customer owes +oyce%s 15 for a trip

4. Ro ce5- o n a co uter orth 61 ,,,

g. +oyce%s owe !5& to a local garage for diesel

6. :hich of the items below are +oyce%s current assets;

a. 2hree coaches are owned by the company.

b. 15 &&& is owed to the bank 9 2he +oyal 6ank of cotland

c. 5 &&& is owed to /oshua%s mother

/. There i- 6#&' in Ro ce5- 0an7 account.

e. A cu-to er o e- Ro ce5- 61! 4or a tri


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f. +oyce%s own a computer worth 1 &&&

g. +oyce%s owe !5& to a local garage for diesel

. :hat is the value of +oyce%s liabilities;

a. 62, 2!,

b. !& 5&&

c. !& &&&


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apitalto calculate the value of +oyce%s coaches" x#.

Assets Liabilities Capital coaches computer bank debtor +6 mother garage capital

x > 1,&&& > (7 > 15 = 15,&&& > 5,&&& > !5& > 3&,&&&

An- er: 6 '8!!&

Tut 3.3

?rom the data provided use the accounting equation

Fixed Assets + Current Assets = Current Liabilities + Long Term Liabilities + Capital

to work out the missing value.

-achinery )&tock 3&

6ank 15?i'ture and fittings !5@ehicles 3&


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?rom the data provided use the accounting equation

Fixed Assets + Current Assets = Current Liabilities + Long Term Liabilities + Capital

to work out the missing value.

-achinery (&tock !&

6ank &?i'ture and fittings !&@ehicles 3&


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Tut 3.

Aelly started in business as a wholesale stationer on 1 /anuary !&&(. he called her businessAelly%s tationary. he paid into a business bank account !&& &&& as the initial capital of the

business.

6y 31


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KE((*5S STATIONAR*BA(ANCE S%EET AS AT 31 DECE9BER 2,,#

I;ED ASSETSBremises 1!& &&&?i'tures and ?ittings 3& &&&


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Tut 3.!

M21EKMtut3 (Sol) - Balance Sheet

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