Assignment about What is Liabilities?

Worksheet
Assets = Liability + Owners Equity Notes
Current Assets Non-current
Assets
Check Current Liabilities Non-current
Liabilities
Owners’ Equity Check
Bank Accounts
receivable
Stock Fixture &
Fitting
Accounts
payable
Accrued
expense
Loan Capital Retained
earnings
Opening
balance
7,000 4,000 11,000 25,000 47,000 3,000 2,000 10,000 25,000 7,000 47,000
Credit
purchase
0 30,000 -30,000 0
Cash
sales
28,000 28,000 28,000 28,000
Credit
sales
37,000 37,000 37,000 37,000
Paid
wages
-
12,000
-12,000 -2,000 -10,000 -12,000
Paid A/P -
30,000
-30,000 -30,000 -30,000
Collection
from A/R
32,000 -32,000 0 0
Int on
loan
-600 -600 -600 -600
Repaid
loan
-3,500 -3,500 -3,500 -3,500
Owner’s
drawings
-6,000 -6,000 -6,000 -6,000
Dep -2,500 -2,500 -2,500 -2,500
Stock 1,000 1,000 1,000 1,000
Closing
Balance
14,900 9,000 12,000 22,500 58,400 3,000 0 6,500 19,000 29,900 58,400

Profit and loss statement as on 31st December 2018
Particulars Amount ($)
Sales
Credit sales 37,000
Cash sales 28,000
Total sales (A) 65,000
Less: Cost of sales (B) 29,000
Opening stock 11,000
Add: Purchases 30,000
Less: Closing stock 12,000
Gross Profit Margin (C= (A)-(B)) 36,000
Operating expenses
Wages expense 10,000
Depreciation expense 2,500
Total operating expense (D) 12,500
Operating income (E = (C) –(D)) 23,500
Interest on Loan 600
Net Income 22,900

Balance Sheet as at Dec 31 2018
Current Assets Current Liabilities
Bank $14,900 Accounts Payable $3,000
Accounts Receivable $9,000 Accrued expenses -
Stock $12,000 Non-Current Liabilities
$35,900 Loan $6,500
Non-Current Assets Total liabilities $9,500
Fixtures & fittings 25,000 Owner’s Equity
Less: Depreciation (2,500) Capital $19,000
Net Fixture & Fittings 22,500 Retained earnings $29,900
Total equity $48,900
Total assets $58,400 Total liabilities & equity $58,400

References:
Chris B. Murphy. (2019). How do balance sheet and income statement differ. Available at https://www.investopedia.com/ask/answers/101314/what-difference-between-
income-statement-and-balance-sheet.asp (Accessed on August 18, 2019).
Koornhof, Carolina. (2018). A balance sheet approach versus an income statement approach to financial reporting. Available at: http://hdl.handle.net/2263/65129. 4.