☆Financial Statements include:
  - a statement of financial position at the end of the period
  - a statement of comprehensive income for the period
  - a statement of changes in equity for the period
  - statement of cash flows for the period
  - notes, comprising a summary of accounting policies and other explanatory notes
  The statement of financial position:
  Statement of Financial Position: showing the financial position of a business at a point of time.
  The Vertical format of the SFP: (Statement of Financial Position as at 31 December 2007)
  ●The top half of the balance sheet shows the assets of the business.
  ●The bottom half of the balance sheet shows the capital and liabilities of the business.
  A Statement of financial position at the end of the period (Balance Sheet):
  W Xang
  Balance Sheet as at December 31 20X6

 

$

$

Non – current assets

 

 

Motor Van

 

2,400

Current assets

 

 

Inventory

2,390

 

Trade receivables

1,840

 

Cash at bank

1,704

 

Cash in hand

56

 

 

 

5,990

Total assets

 

8,390

 

 

 

 

$

$

Capital account

 

 

Balance at 1 January 20X6

4,200

 

Add net profit for year

3,450

 

Increase in capital

1,000

 

 

8,650

 

Less: Drawing for year

2,960

 

 

 

5,690

 

 

 

Non – current liabilities

 

1,000

Current liabilities

 

 

Payable

 

1,700

Total

 

8,390

  The horizontal format of the SFP: (Statement of Financial Position as at 31 December 2007)

  ●The left half of the balance sheet shows the assets of the business.

  ●The right half of the balance sheet shows the capital and liabilities of the business.

  W Xang

  Statement of Financial Position as at 31 December 20x6

 

$

$

 

$

$

Non-current assets

 

 

Non-current liabilities

 

1,000

Motor van

 

2,400

Trade payable

 

 1,700

 

 

2,400

Total liabilities

 

 2,700

 

 

 

Capital account

 

 

Current assets

 

 

Balance at 1 January 20X6

4,200

 

Inventory

2,390

 

Add net profit for year

3,450

 

Trade receivables

1,680

 

Increase in capital

1,000

 

Cash at bank

1,704

 

 

8,650

 

Cash in hand

56

 

Less: Drawing for year

-2,960

 

Total current assets

 

5,990

 

 

5,690

Total assets

 

8,390

Total capital and liabilities

 

8,390

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