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Suffolker


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Balance Sheet - Studying
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I was just wondering if anyone could possibly help me please. 
I'm currently studying for the ICB level 3 Diploma in Bookkeeping.  I have to create a balance sheet.  I've managed to do the Trading and Profit and Loss accounts and they have given me the trial balance.

I don't really know what to put where in the balance sheet though.

This is the trial balance:

Amount invested by owner                                                 27,500     
Amounts owed by customers                   14,350
Amounts owed to suppliers                                                11,200
Sales to customers                                                           124,300
Purchases from suppliers                         92,800
Amounts paid out for:
Heat and light                                         5,400
Rent and rates                                        6,000
Cleaning                                                 1,300
Stationary                                                 640
Bank int recd                                                                         230
Stock of supplies at start                         8,250
Furniture and Fittings owned                    11,700
Office Machinery owned                             3,250
Borrowed from loan company                                              15,000
Cash discount allowed                                   20                       
Cash Discount recd                                                                   30
Goods returned to suppliers                                                 1,320
bank balance                                            35,870

This is what I've worked the Trading account to be:

Opening Stock          8,250                                     Sales 124,300
Purchases               92,800
Goods Available     101,050
Closing Stock            8,580
Cost Of Goods Sold  92,470
Gross Profit c/d        31,830

                            124,300                                             124,300

And I made the profit and loss account to be: (although I'm not 100% I've included all that needs to be in there)

Heat & Light           5,400                    Gross Profit b/d   31,830
Rent & Rates          6,000
Cleaning                 1,300
Stationary                 640
Net Profit              18,490

                            31,830                                             31,830

Any help you could give me would be very much appreciatedsmile

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Suffolker


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Have just given it a go.... am I on the right track?!

Fixed Assets

Furniture & Fittings  11,700
Office Machinery        3,250
                                                 =14,950

Current Assets

Stock                      8,580
Bank Balance          35,870
                                                 = 44,450

Total Assets                               = 59,400

Long Term Liabilities

Loan                     15,000
                                                  =15,000

Current Liabilities

Money Owed To Suppliers  11,200
                                                  =11,200

Total Assets Less Current Liab       =48,200

Owners Investestment   27,500
                                                   =27,500

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Gemma12


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here goes :

sales                                   124300
cost of sales:
  opening stock       8250
  purchases          92800
  goods returned   (1320)
  closing stock       (8580)
                                          (91150)
gross profit                           33150
discount received                        30
bank interest received                230
total                                     33410
less expenses:
  heat & light        5400
  rent & rates       6000
  cleaning             1300
  stationery            640
  discount all            20
total exps                             (13360)
profit                                     20050

balance sheet

F&F                                                          11700
OM                                                             3250
                                                                14950
bank                                      35870
customers                              14350
stock                                       8580
                                             58800
loan                    15000
suppliers             11200
                                            (26200)
                                                                32600
                                                                47550

capital                                                       27500
profit                                                        20050
                                                                47550

this assumes of course that there are no adjustments for depreciation, accruals, prepayments, bad dents or creation of a provison for doubtful debts

Gemma

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Suffolker


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Oh wow your a star Gemma thank you very much biggrin

I was quite abit out really wasn't I hmm

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Suffolker


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By the way, am I not suppose to put the 'Goods available' and 'Cost of goods sold' in the trading account section?

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Gemma12


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yeh, you can - these are only really "headings", and I'm not sure on where the marks are allocated
but when I did the A level last year we were told that it wasn't really necessary

Gemma

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Suffolker


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Thank you for your help Gemma :) Just working through the answers and I actually get it :) really chuffed! Thanks

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Suffolker


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I've got a trial balance which has selling expenses in the debit side as 1,950. It then says 'Selling expenses paid by cheque were 140' does this mean I plus or minus the 140 to/from the 1,950?

A simple question I know but one I'm not sure of!



Many Thanks in advance


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Suffolker


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I add it to the 1,950 don't I?

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Gemma12


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yeh, you need to add them both together

the selling expenses paid by cheque would be accounted for as
DR selling expenses
CR bank

Gemma

-- Edited by Gemma12 at 09:52, 2008-09-03

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Suffolker


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Thanks Gemma :)

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