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