Sample Assignment on Statement of Financial Position

Statement of Financial Position
Assets Amount Adj. Entry Amount Liabilities Amount Adj. Entry Amount
Property £145,000 £145,000 Equity £203,000
Induction of capital £100,000 £303,000
Furniture & Fittings £63,000 £63,000 Short term Borrowing £43,000 £43,000
Inventories £28,000 Trade Payables £23,000
Inventory Sold -£8,000 Inventory on credit £14,000
Inventory Sold -£17,000 Trade Payable Payment -£13,000 £24,000
Inventory Purchased £14,000 £17,000
Profit on Sale of Inventory £3,000
Profit on Sale of Inventory-2 £6,000 £9,000
Trade Receivables £33,000
Inventory sold on credit £23,000
cash received from trade receivable -£18,000 £38,000
Cash
Inventories sold in cash £11,000
cash received from trade receivable £18,000 £29,000
Bank Account
Induction of Capital £100,000
Motor car purchased -£10,000
Trade Payable Payment -£13,000 £77,000
Motor Car £10,000 £10,000
Total £269,000 £110,000 £379,000 Total £269,000 £110,000 £379,000

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Significant Changes during the Week & Important Notes

Major Changes in the Asset Side of Business
  • The stock of the business was 63,000 British pounds; whereas after passing out the adjusting entries, the stock of the business was reduced to 17,000 British pounds.
  • At week start, the Trade Receivables of the business were 33,000 British pounds, whereas after passing out the adjusting entries, the trade receivables of the business increased to 38,000 British pounds.
  • There was no cash on hand available with the business at the start, after passing out the adjusting entries, the Cash on Hand of the business increased to 29,000 British pounds.
  • The Bank Balance of the business was Zero at the start of the week, after passing out adjusting entries, the Bank Account of the business increased to 77,000 British pounds.
  • Businesses purchased Motor cars during the week, hence Motor car accounts increased to 10,000 British pounds at the weekend.

Major Changes in the Liabilities Side of Business

  • At the start of the week, the capital of the business was 203,000 British Pounds whereas 100,000 British pounds were injected as capital during the week, hence, the capital account of the business increased to 303,000 British pounds.
  • Trade payables of the business increased by 1,000 British pounds during the week.
  • The business earned a profit of 9,000 British pounds on selling its inventories.

Conclusion

  • Balance Sheet footing of the business increased by 110,000 British pounds during the week.

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