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Balance Sheet

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					                       Peter Piper Picked Pickled Peppers

                                  Balance Sheet as at

                                    30th June 2007


1 ASSETS                                     4 LIABILITIES & OWNERS EQUITY
2 Current Assets                             5 Current Liabilities
  Cash                            2,100        Credit Card Closing Balance 1,700
  Petty Cash                       100         Accounts Payable            6,500
  Debtors                         2,500        Taxes Payable               1,000
  Stock                           5,000        Warranty Owing               500
  Prepaid Insurance               1,500        Wages                        500


   Total Current Assets          11,200         Total Current Liabilities        10,200

3 Non Current Assets                         6 Non Current Liabilities
  Motor Vehicles                  15,000
  Plant & Equipment               15,000        Business Loan                    25,000
  Less: Accum Depreciation        -5,000

   Total Non Current Assets 25,000              Total Non Current Liabilities 25,000

                                             7 OWNERS EQUITY
                                               Retained Earnings                  1,000

   TOTAL ASSETS                  36,200         TOTAL LIABILITIES                36,200




                                  Note this two totals must balance in order for
                                  the balance sheet to be correct and balanced.


1 Assets
  Assets are subdivided into current and long-term assets to reflect the ease of
  liquidating each asset. Cash, for obvious reasons, is considered the most liquid of all
  assets.

2 Current assets
  Current assets are any assets that can be easily be consumed or converted into cash
  within 12 months. Examples of current assets would be cash, accounts receivable,
  and stock.

3 Non-Current Assets
  Non Current Assets are those assets less likely to be converted into cash or consumed
  within 12 months such as plant and machinery, equipment or motor vehicles.

4 Liabilities and owners’ equity
  This includes all debts and obligations owed by the business to outside creditors,
  suppliers or banks that are payable within one year, plus the owners’ equity. Often,
  this side of the balance sheet is simply referred to as “Liabilities.”

5 Current Liabilities
  Current liabilities are those liabilities that would in the ordinary course of business be
  due and payable within 12 months. These can include, credit card debts and
  accounts payable.

6 Non Current Liabilities
   These are any debts or obligations owed by the business that are due more than one
   year out from the current date.

7 Owners’ Equity
  Sometimes this is referred to as stockholders’ equity. Owners’ equity is made up of
  the initial investment in the business as well as any retained earnings that are
  reinvested in the business. It is the residual interest in the assets of the entity after
  the deduction of its liabilities.

				
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