Profit And Loss And Balance Sheets Page 25
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26THE BALANCE SHEET EXERCISE
Wood ’N’ Tops a community-based
Current Liabilities
organisation is preparing a balance sheet for
Wood ’N’ Tops owes the following bills:
the Local Authority. The following financial
£708 to an equipment supplier, £280 to
information is available:
the electricity company, £400 rent to the
Local Authority and £300 wages. The last
Fixed Assets
quarter’s gas bill was £205 but no invoice
There are fixed assets of £19,960 (mostly
has been received. There is a loan of
wood-working equipment and fixtures) and
£2,055 outstanding.
these are to be depreciated over 5 years
by the ’straight-line method’.
Reserves
As well as cash in the organisation’s current
Current Assets
account, it holds £13,182 in a deposit account
There is currently £4,917 in the
as a general reserve.
organisation’s bank account. The Local
Authority owes £1,700 from this year’s grant
Profits
and there is stock of £500 unsold furniture
The organisation made a profit on the year’s
and furniture undergoing construction
trading activities of £7,005.
valued at £600.
Note: You may wish to substitute real
information from a community-based
organisation or enterprise you are involved
with for the purpose of these exercises.
P 237
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