Question

Question 3 - Balance Sheet You are presented with the following statement of financial position which is in an incorrect draft. Assuming the accounts and amounts are correct, prepare the statement of financial position again, making the necessary corrections. $ $ 9,000 11,000 26,000 46,000 15,000 20,000 18,000 53,000 99,000 Current assets Cash at bank Accounts payable Plant and machinery Non-current assets Inventory Asset revaluation increment Motor vehicles Total assets Current liabilities Accounts receivable Prepayments Non-current liabilities Bank overdraft Land and buildings Loan Owner's equity Opening balance Minus profit Add drawings Total liabilities and owner's equity 6,000 1,000 7,000 14,000 50,000 10,000 74,000 40,000 32,000 10,000 99,000

Answer 1

9,000 15,000 6,000 1,000 31,000 26,000 18,000 50,000 94,000 125,000 $ Balance Sheet For the Year Ended December 31, 2018 Assets Current assets: Cash at bank Inventory Accounts receivable Prepayments Total current assets Fixed assets: Plant and machinery Motor vehicle Land and buildings Total fixed assets Total assets Liabilities and Owners' Equity Current liabilities: Accounts payable Bank overdraft Total current liabilities Non-current liabilities: Asset revaluation incremant Loan Total non-current liabilities Owners' equity Capital 40,000 Add: Profit 32,000 Less: Drawings 10,000 Add: Retained earnnigs (40000-32000) 8,000 Retained earnings Total Owners' equity Total liabilities and owners' Equity 11,000 14,000 25,000 20,000 10,000 30,000 70,000 70,000 125,000 $ Activate Windows Go to PC settings to activate Wing