ZIMSEC O Level Principles of Accounting: Single entry and Incomplete records: Example 2
- This is a continuation of the question posted here and
- It is the last part of the solution found here
- Now that we have created the Income Statement it is time to create the Statement of Financial Position
William Sachikonye Statement of Financial Position
| $ | $ | $ | |
| Non Current Assets | Balance | Depriciation | Net Book Value |
| Motor Vehicle | 5 100 | (1 020) | 4 080 |
| Shop Fittings | 6 200 | (620) | 5 580 |
| 11 300 | (1 640) | 9 660 | |
| Current Assets | |||
| Stock | 4 063 | ||
| Debtors | 4 012 | ||
| Prepaid Insurance | 177 | ||
| Bank | 1 775 | ||
| 10 027 | |||
| Less Current Liabilities | |||
| Trade Creditors | 2 445 | ||
| Accrued Motor Vehicle Expenses | 291 | ||
(2 736) | |||
| 7291 | |||
16 951 |
|||
| Capital | 15 243 | ||
| Net Profit | |
||
| 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
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