Statement of Financial Position

lucielowe

Hi,

Can anyone help me with the statement of F/P. I understand what it is and how it achieves the answer however I dont understand what goes in which column? The template I have has 3 columns and I'm struggling to remember what goes where. Is there a proper explanation for this to help me remember?

BenA

When trying to remember what goes where think back to the accounting equation.
Assets-Liabilities=Equity or Assets=Equity+Liabilities (This is the order of the SoFP)

Assets
When trying to remember what goes where think back to the accounting equation.
Assets-Liabilities=Equity or Assets=Equity+Liabilities (This is the order of the SoFP)

Assets
Current
Non-Current

Equity


Liabilities
Non-Current
Current

When filling in the statement use process of elimination. Fill in the gaps you know i.e. you know Share capital is equity, PPE is an non-current asset, inventories, trade receivables and cash are all current. If there are any headings left to insert you eliminate the ones you know it isn't.

As for there being 3 columns, are you able to provide a link or screenshot? I have only came across three columns in situations as follows

ASSETS
Non-Current Assets
PPE________________________________________________£100,000

Current Assets
Inventories____________________£50,000
Trade and Other Receivables_____£75,000
Cash and Cash Equivalents______£30,000_________________£155,000
Total Assets_________________________________________£255,000


I hope this helps

Uncleboobot

Hi Lucie,

I stumbled across your post whilst looking for something else, but I also have this issue but can't seem to get a satisfactory answer either

lucielowe said:

Hi,

...... I dont understand what goes in which column? The template I have has 3 columns and I'm struggling to remember what goes where. Is there a proper explanation for this to help me remember?

I have asked the question on this forum and asked my online tutor but as yet, other than learning by repetition, I too, fail to understand what goes in which column, and why.

Did you ever get an answer?

Regards


Stuart

Bertie

I don't understand the question

Uncleboobot

Hi Bertie, I am not the original poster but I think I understand Lucie's question well enough to answer you. I'd really like to insert an image into this thread for you to see an example of what Lucie's talking about. Do you know how to insert images? I'm working from a Macbook (not sure if that is relevant)

Uncleboobot

Bertie, I believe the OP was referring to the layout of the statement of Financial Position like in this example...

lucielowe said:

Hi,

Can anyone help me with the statement of F/P. I understand what it is and how it achieves the answer however I dont understand what goes in which column? The template I have has 3 columns and I'm struggling to remember what goes where. Is there a proper explanation for this to help me remember?

I think the OP is asking if you have to lay these statements out in the exact format as shown in the image. If, yes, (which I believe you do have to), then is there any rhyme or reason to it's layout - how can this layout be learned?

Uncleboobot

Same question for the income statement....




Is there a prescribed format here? What is the reason that certain figures/calculations are in column 1 yet others are in column 2 or 3? Why can't Sales be calculated in Column 1 and and the cost of sales calculated in column 2?

Thanks

UBB

Uncleboobot

Just wanted to bump this question back into life.