Question on Balance Sheet

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, I'm learning Unit 5, Chapter 13 at the moment. It is the chapter where they are explaining the P&L and Balance Sheet in more detail. i don't understand why on the balance sheet, things like stocks and prepayments and cash are listed under the Depreciation column. Can anyone help me with this?

Thanks
Michele

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Question on Balance Sheet

    Michele.

    I don't know which book you are using - they are nothing to do with dep'n.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Question on Balance Sheet

    I'm using the FTC Foulks Lynch books.

    Michele
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Question on Balance Sheet

    Michelle

    The cost and Dep'n colums are ONLY used for the fixed assets, after which, they are both ruled off and only the last column remains open.

    These two colums are now simply used for calculating a figure to be placed in the next column along.

    Hope this helps.

    Carole
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Question on Balance Sheet

    Michelle

    The cost and Dep'n columns are ONLY used for the fixed assets, after which, they are both ruled off and only the last column remains open.

    These two columns are now simply used for calculating a figure to be placed in the next column along.

    Hope this helps.

    Carole
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Question on Balance Sheet

    The depreciation column on the Balance Sheet is used only for the Fixed Assets. Fixed Assets shown in the Balance Sheet as Cost (Column 1), Depreciation (Column 2) and Net Book Value (Column 3). The columns are then used for the rest of the items e.g Current Assets: Stock, Debtors, etc for simplicity even though they have nothing do to with depreciation. Hope this helps!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Question on Balance Sheet

    Thanks for this guys, just a shame that wasn't explained more in the book lol!

    M

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