OCR Level 3 Cambridge Technicals in Business Unit

OCR Level 3 Cambridge Technicals in Business Unit 4: Business Accounting Layout of a Balance Sheet

Balance sheet The balance sheet shows the financial state of the business at any one moment in time. It lists the assets and liabilities at a particular date, but unlike the profit and loss account is not part of the double entry bookkeeping system.

Balance sheet The balance sheet is an ‘as at’ statement and is therefore correct only for that moment in time. For example: Name of Business Balance sheet as at 31 st December 2013 The following slides show the correct layout of the balance sheet.

Layout Balance Sheet of Brown & Co As at 31 st December 2013 £ Fixed Assets Premises Vehicles £ 80, 000 10, 000 90, 000

Layout £ Current Assets Closing Stock 4, 000 Debtors 3, 000 Bank 5, 000 Cash 12, 100 £ 100

Layout £ £ Current Liabilities Creditors (6, 100) Net Current Assets/Working Capital Net current assets are then added to fixed assets 6, 000 96, 000

Layout £ Less Long Term Liabilities Loan Net Assets £ 96, 000 (6, 000) 90, 000

Layout £ Financed by: Owner’s Capital Add Net Profit Less drawings Equity £ 80, 000 26, 000 106, 000 (16, 000) 90, 000

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