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Profit & Loss Account for Unknown Ltd. Year ending Apr09. 1500. 1045. 180. 100. The Balance Sheet. It shows the value liquidity gearing of a business on a specific date. What a business owns (assets). What a business owes (liabilities). Net Assets (Assets - Liabilities).
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Profit & Loss Account for Unknown Ltd. Year ending Apr09 1500 1045 180 100
The Balance Sheet • It shows the • value • liquidity • gearing • of a business on a specific date What a business owns (assets) What a business owes (liabilities) Net Assets (Assets - Liabilities) Sources of Finance. (Where the money came from to acquire their Net Assets) Be careful of Long-term Liabilities, They are USUALLY Sources of Finance
Balance Sheet for HooNo’s plc, as at 23rd September 2009 FIXED ASSETS Buildings, Machinery etc CURRENT ASSETS Stock, Cash, Debtors etc LONG TERM LIABILITIES Debentures, Loans etc CURRENT LIABILITIES Overdraft, Creditors etc CAPITAL & RESERVES Shares, Retained Profit Personal Finance etc WORKING CAPITAL = Current Assets – Current Liabilities NET ASSETS = FA + CA - CL NET CAPITAL = LTL + C&R
Balance Sheet for Unknown Ltd. Apr 21st 2009 2000 CURRENT LIABILITIES 1000 3000 4000
page 401 For PaulH Balance Sheet Structure – note where dividends and taxation are entered. Read&Summarise p 402 Uses&Limitations Q 3.5.5 With the following changes for 2007 … Share Capital 170 & Retained Profit 55
