| $ | $ |
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 |