Balance Sheet

Fixed Assets

The value of what the company owns that is expected to last a year of
more. This is split into Intangible (i.e Goodwill) and tangible assets (i.e.
Plant and Machinery, Motor Vehicles, Freehold Property)

Current Assets

The value of short term assets such as Stock, Bank Balances, Petty
Cash, Debtors

Total Assets

The total of Fixed Assets plus Current Assets

Current Liabilities

Any debts owed by the business that it reasonably expects to repay
within the next 12 months

Long Term Liabilities

Any debts owed by the business that it reasonably expects to repay
after the next 12 months

Total Liabilities

The total of Current Liabilities plus Long Term Liabilities

Net Assets

The Total Assets minus the Total Liabilities

Capital Account

The owners investment comprising of opening capital, net profit (from
the profit and loss account), Drawings and Capital Introduced

 

Let’s
see an actual Balance Sheet and you can see how the figures relate to the table
above using the figures from our previous trial balance.

 

You MUST ensure
that Net assets equal the Total Funds if it doesn’t then you have made a mistake.

 

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