Balance Sheet

The Balance Sheet is a statement which is prepared at the end of every Financial year.  It shows the Financial position, that is its strengths and weaknesses.

It shows the details of the Assets, Liabilities, and Capital at a particular point in time.

Example 1:




















Example 2:



















Example 3:



Example 4:


Transactions during first week of January 2014
  1. Sold goods on credit £150
    • Stock reduced by £150
    • Debtors increased by £150
  2. Withdrew £300 cash from the bank
    • Cash at Bank reduced by £300
    • Cash at Hand increased by £300
  3. Bought goods for £650 paying by cheque
    • Cash at Bank reduced by £650
    • Stock increased by £650
  4. The owner invested £1,500 cash into the business
    • Capital increased by £1,500
    • Cash at Hand increased by £1,500