Fixed Assets Fixed Assets describes things a company
Land and Buildings 5,000 owns which are used for production e.g.
factories, buildings, machinery, vehicles.
20,500 Add these together and write the total here
Stock 15,000 Current Assets are things that can be easily
Cash 2,500 converted to cash. Includes stock, cash and
money owed by debtors
Current Liabilities Add these together and write the total here
Bank loan 4,500 Current Liabilities are items that the firm
6,500 owes that are due within 12 months.
Includes cash owed to creditors and loans
Net Current Assets 14,000
Add these together and write the total here
Total Assets less
current liabilities 34,500
Net Current Assets = Current Assets –
Shareholders funds 30,000
Total Assets less current liabilities = Net
Retained profit 4,500 Current Assets + Fixed Assets
The money must have come from somewhere!!!!! Total
Assets less current liabilities belongs to the share
holders and retained profit. These two entries must be
equal to the Total Assets less Current Liabilties.