ANYONE ANY GOOD AT BALANCE SHEETS?

[Darren B]

Take this balance sheet for example, If the owner withdrew capital in the form of cash £20,000 what would the resulting changes be? HELP MUCH APPRECIATED!


Fixed Assets £ £ £
Motor Van: Cost 12,000
Depreciation 2,500
9,500



Current Assets
Stock in trade 65,000
Trade debtors 19,600
Prepaid expenses 5,300
Cash 750

90,650

Less Current Liabilities
Trade Creditors 22,000
Accrued expenses 1,250

23,250

67,400
76,900

Capital
Original 50,000
Retained profit 26,900
76,900

[Darren B]

table didnt come out to well but as both stand they balance at 76,900

[playa]

i am failing my accounting class,,,

debits and credits,, debits and credits,, its killing me

[HeLiS]

hey playa wait till they try and tell you that a debit is a credit and a credit is a debit....that is the part which really fucked with my mind ay hahaha

no wonder accountants get paid so much they know we hate doing the accounts and they can charge a shit load for it hehe

Originally posted by playa:
<STRONG>i am failing my accounting class,,,

debits and credits,, debits and credits,, its killing me</STRONG>

[smut pimp]

You should deduct 20.000 from both sides. 20.000 should be deducted from your capital. (like deduct 20.000 from your starting capital or make a specific line for it)

And on the other site you should deduct it were you got it from. As far i can see there is no 20.000 in cash reserves so you should figure out where that money came from (like debtors or conversion from stock in cash or something) and deduct it from those ammounts.

Reading back what i've written i realy do wonder if it makes any sense becouse i don't know the apropriate terms in english but i hope that it will help you at least a bit ;-)