Preparation of Simple Balance Sheet - JSS3 Business studies Lesson Note
Sample Transactions:
- Invested ₦50,000 cash in the business.
- Purchased inventory worth ₦8,000 on credit.
- Sold goods for ₦12,000, receiving ₦5,000 in cash and the rest on credit.
- Paid ₦3,000 towards short-term loans.
- Paid ₦2,000 for accrued expenses.
- Purchased equipment for ₦30,000, paying ₦10,000 in cash and the rest on credit.
- Received ₦5,000 from accounts receivable.
- Paid ₦1,000 dividends.
Using these transactions, you can update the balance sheet accordingly.
To prepare a simple balance sheet, you need to list all the assets, liabilities, and equity items. Here's a basic example:
|
Assets |
Liabilities and Equity |
||
|
Current Assets |
Current Liabilities |
||
|
Cash |
₦10,000 |
Accounts Payable |
₦5,000 |
|
Accounts Receivable |
₦5,000 |
Short-term Loans |
₦3,000 |
|
Inventory |
₦8,000 |
Accrued Expenses |
₦2,000 |
|
Total Current Assets |
₦23,000 |
Total Current Liabilities |
₦10,000 |
|
Non-current Assets |
Non-current Liabilities |
||
|
Property |
₦50,000 |
Long-term Loans |
₦15,000 |
|
Equipment |
₦30,000 |
||
|
Total Non-current Assets |
₦80,000 |
||
|
Total Assets |
₦103,000 |
₦103,000 |
|
|
Share Capital |
₦50,000 |
||
|
Retained Earnings |
₦25,000 |
||
|
Reserves |
₦5,000 |
||
|
Total Liabilities and Equity |
₦103,000 |