September 1st, 2019, Mr. V has the following Assets. A Computer worth $600, $37 in cash, a car worth $25000, and other possessions worth $1000. Mr. V has the following liabilities: $34000 in bank loans, a $14000 loan from his parents, a $1200 credit card bill, and a $45 phone bill.
How to make ledger and journal based on this transaction
1. Balance Sheet of Mr. V as on 01-09-2019 :
Balance Sheet as on 01-09-2019 | |||
Liabilities | $ | Assets | $ |
Bank Loans | 34000 | Computer | 600 |
Loan from Parents | 14000 | Cash | 37 |
Credit Card bill | 1200 | Car | 25000 |
Phone Bill | 45 | Other Possessions | 1000 |
Net Worth | -22608 | ||
Total | 26637 | 26637 |
The Networth of Mr. V is negative as on 01-09-2019 i,e ($22608).
2. Income Statement and new Balance Sheet :
Income Statement after given Transactions | |||
Expenses | $ | Income | $ |
Coffee | 10 | Lottery | 1000 |
Rent for September | 500 | Teaching Income | 4000 |
Haircut | 25 | ||
Interest on Loans | 100 | ||
Phone Bill | 45 | ||
Net Income | 4320 | ||
Total | 5000 | Total | 5000 |
New Balance Sheet after given Transactions | |||
Liabilities | $ | Assets | $ |
Bank Loans | 32000 | Computer | 600 |
Loan from Parents | 14000 | Cash | 657 |
Credit Card bill | 1000 | Car | 25000 |
Phone Bill | 45 | Other Possessions | 1000 |
Net Worth | -18288 | Advance Rent for October | 500 |
Desk Chair | 1000 | ||
Total | 28757 | 28757 |
Calculations :
New Balance Sheet after given Transactions | |||
Liabilities | $ | Assets | $ |
Bank Loans | =34000-2000 | Computer | 600 |
Loan from Parents | 14000 | Cash | =37-10-500-500+1000-25+4000-2000-1200-45-100 |
Credit Card bill | =1200-1200+1000 | Car | 25000 |
Phone Bill | =45-45+45 | Other Possessions | 1000 |
Net Worth | =-22608+B19 | Advance Rent for October | 500 |
Desk Chair | 1000 | ||
Total | =SUM(B3:B8) | =SUM(D3:D8) | |
Income Statement after given Transactions | |||
Expenses | $ | Income | $ |
Coffee | 10 | Lottery | 1000 |
Rent for September | 500 | Teaching Income | 4000 |
Haircut | 25 | ||
Interest on Loans | 100 | ||
Phone Bill | 45 | ||
Net Income | =SUM(D14:D15)-SUM(B14:B18) | ||
Total | =SUM(B14:B19) | Total | =SUM(D14:D18) |
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