I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

97 

CAPITAL 

 

$       

$      

Drawings 

 

1,500 Cash at bank 

         7,000 

Balance c/d 

 

7,500 P/L a/c 

 

2,000 

 

 

9,000  

 

9,000 

 

Balance b/d 

 

7,500 

QUESTION 

Statement of financial position

 

You can now complete Ron Knuckle's simple statement of financial position. 

ANSWER 

RON KNUCKLE 

STATEMENT OF FINANCIAL POSITION AT END OF FIRST TRADING PERIOD 

Assets 

 

$     

Non-current assets 

   

Shop fittings 

 

2,000

Current assets 

   

Cash at bank 

 

6,500

Total assets 

 

8,500

Capital and liabilities 

Proprietor's capital 

 

7,500

Non-current liabilities 

   

Bank loan 

 

1,000

Total capital and liabilities 

 

8,500 

 

When a statement of financial position is drawn up for an accounting period which is not the first one, 

then it ought to show the capital at the start of the accounting period and the capital at the end of the 

accounting period. This will be illustrated in the next example. 

In an examination question, you might not be given the ledger accounts – you might have to draw them 

up in the first place. That is the case with the following exercise – see if you can do it by yourself before 

looking at the solution. 

The opening trial balance for the next period is the closing statement of financial position for the 

previous period. So the opening trial balance for Ron Knuckle at the beginning of the second trading 

period will be:  

Account  

Dr 

Cr 

 

 $ 

 $ 

Shop fittings 

 2,000 

 

Cash at bank 

 6,500 

 

Capital 

 

 7,500 

Bank loan 

 

 1,000 

 

            

           

Totals 

 8,500 

 8,500 

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