Balance sheets

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I have real trouble trying to deal with these, ie remembering where everything goes and the layout, I am trying to find some exercises in the book that will enable me to literally just complete a balance sheet to practice but I cant find anything, can anyone help or advise of a something I can do to remember it?<BR><BR>HELP

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    remember this : long, short, short, long<BR><BR>Long = fixed assets<BR>short = current assets<BR>short = current liabilites<BR>long = longer term borrowing ie loans<BR><BR>Then the bottom part is proprietors ownership, capital, net profit,drawings or in a case of partnership drawings and profit will be replaced by current accounts.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    I remember the current assets as follows (don't laugh) as they have to go with the most liquid at the bottom and least liquid at the top<BR><BR>Sit<BR>Down<BR>Pretty<BR>Please<BR>Black<BR>Cat<BR><BR>Stock<BR>Debtors<BR>Provision for bad debts<BR>Prepayments<BR>Bank<BR>Cash<BR><BR>I find it really useful and hope you will to
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    thats a brill way and did make me chuckle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    I know it makes me laugh as well. I could never get them in the right order until I learnt this and now I get it right every time. Hoping other people will find it as useful as me.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    Stray<BR>Dogs<BR>Bite<BR>Cats<BR>Painfully<BR><BR><BR>Stock<BR>Debtors<BR>Bank<BR>Cash<BR>Prepayments<BR><BR><BR>I thought Provision for Bad Debts was a Credit in the balance sheet (ETB) and therefore is entered in the Current Liabilities ?!?!?!<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    you lot are proper bonkers!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    <BR>Posts: 9<BR>Joined: Jun 2005 <BR> Tuesday June 14, 2005 2:29 PM <BR>Balance sheets (Andyy) <BR> <BR> <BR><BR>
    <BR>I thought Provision for Bad Debts was a Credit in the balance sheet (ETB) and therefore is entered in the Current Liabilities ?!?!?!<BR>
    <BR><BR>Hi Talent,<BR><BR>Alot of people fall into the trap of doing this and it is incorrect.<BR>The provision for bad debts must allways be shown as an adjustment to the debtors figure in current assets i.e<BR><BR>Current Assets:<BR>Stock _______________________15,000<BR>Bank _______________________10,000<BR>Debtors ________________8,000<BR>Provision for Doubtful debts (250) 7,750<BR><BR><BR>P.s i am really sorry about the layout above but its the best i could do.<BR><BR>Andy <BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    Although the provision for bad and doubtful debt is a credit balance, its used in the sense that you need to reduce your debtors, ie money owed, therefore it falls in to the current asset catagory
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    Santa<BR>Delivers<BR>Presents<BR>Before<BR>Christmas<BR><BR>Stock<BR>Debtors<BR>Prepayments<BR>Bank<BR>Cash<BR><BR>in his...<BR><BR>V Reg<BR>C<BR>A<BR>B<BR><BR>VAT<BR>Creditors<BR>Accruals<BR>Bank overdraft
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Balance sheets

    Ahhh yeah, makes sense, i remember now. HAHA, we have been doing FRA and ECR at the smae time and was taught bad debts and that AGES ago. so im trying to recap it and there is a lot more to remember than i thought.

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