ZIMSEC O Level Principles of Accounting: Single entry and Incomplete records: Example 2

William Sachikonye Statement of Financial Position

$$$
Non Current AssetsBalanceDepriciationNet Book Value
Motor Vehicle5 100(1 020)4 080
Shop Fittings

6 200

(620)

5 580

11 300(1 640)9 660
Current Assets
Stock4 063
Debtors4 012
Prepaid Insurance177
Bank

1 775

10 027
Less Current Liabilities
Trade Creditors2 445
Accrued Motor Vehicle Expenses291

(2 736)

7291

16 951

Capital15 243
Net Profit


18 701

33 944
Less Drawings (16 743+250)(16 993)

16 951

  • Capital is inserted as a Balancing figure in this case
  • The difference between Opening Capital and Closing Capital shown above can be easily explained by additional capital injected in the business during the year Capital at the beginning was $13 123
  • Drawings include the $250 taken in the form of Shop Fittings
  • Depreciation is calculated only on year end balances

To access more topics go to the Principles of Accounting Notes.

 

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