Statement of Financial position - little question

Kelly7

Hi guys

I think I'm just missing something simple here but I have started to do some questions we were set for homework and they are sets of information and asking to do an income statement and statement of financial position. I have done the income statement but when I get to the statement of financial position I have calculate the net current assets as my fixed assets + current assets - current liabilities, I haven't been given the capital figure but was told to work that out by using the account equation of assets - liabilities = capital so I have the same figure for my capial as my net currents assets and I don't think that is correct?

Can anyone help on what I am doing wrong?

Thank you in advance.

Kelly

billdoor

Hi Kelly

Just a quick answer, hope I'm reading your post correctly. I think the problem is that net assets should just be fixed assets + current assets. Don't put liabilities in there too as that is separate.

Have them in three parts:

Net assets: non-current (fixed) assets + current assets.
Liabilities
Capital

Net assets - Liabilities = Capital

Does that work?

Kelly7

Hiya
Thank you for replying, just read through my post again & I didn't type or very well. I have printed the answer to one...

Carrying amount of non current assets ~ 8,000

Total of current assets ~ 12,595

Total of current liabilities ~ 1,260

So, the net current assets are 11,335 (current assets minus current liabilities)
The net assets are 19,335 (non current assets carrying amount plus current assets minus current liabilities)
The capital is 14,375 & has another line of 2,500 of new capital introduced but I can't see where the original figure is from

taraskyn

Hi!
Your New Capital should = Net Assets.
As in Statement of Financial Position,
(Non-current assets + (Current Assets - Current Liabilities)) -Non-Current Liabilities = Net Assets
Opening Capital + Net profit + More capital introduced - Drawings = New Capital
Net Assets = New capital - - - - ALWAYS!