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JSS3: BUSINESS STUDIES - 2ND TERM

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  1. Setting Simple Business Goals | Week 1
    3 Topics
    |
    1 Quiz
  2. Simple Single Business Plan | Week 2
    2 Topics
    |
    1 Quiz
  3. Consumer Protection Agencies | Week 3
    8 Topics
    |
    1 Quiz
  4. How to make Complaints | Week 4
    3 Topics
    |
    1 Quiz
  5. Reasons and Procedures for Banning and Restricting Chemicals not Suitable for Use | Week 5
    4 Topics
    |
    1 Quiz
  6. How to Seek Redress | Week 6
    3 Topics
    |
    1 Quiz
  7. Personal Finance | Week 7
    7 Topics
    |
    1 Quiz
  8. Trial Balance | Week 8
    3 Topics
    |
    1 Quiz
  9. Trading, Profit and Loss | Week 9
    2 Topics
    |
    1 Quiz
  10. Balance Sheet | Week 10
    1 Topic
    |
    1 Quiz
  11. Business Letters | Week 11
    2 Topics
    |
    1 Quiz
  12. Simple Tabulation - Table Creation | Week 12
    4 Topics
    |
    1 Quiz
  13. Manuscript Abbreviations and Erasing Technique | Week 13
    3 Topics
    |
    1 Quiz



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The balance sheet is a statement showing the true financial position of the business as at a given date. It is prepared to show the organisation’s assets, liabilities, and capital.

The balance sheet equation is:

Assets = Capital + Liabilities

The balance sheet is not an account hence; the assets are classified on the right while the capital and liabilities are grouped on the left if the conventional “T” format is used.  Items that are left in the trial balance after preparing the trading profit and loss accounts, together with the net profit or net loss are used.

Assets:

These are things or properties owned by the business which are used for the day to day running of its activities. We have different assets such as fixed, current, intangible, and fictitious assets. 

Fixed assets:

Fixed assets are things or properties used in business, which are permanent in nature and can be used for over one year e.g. land and building, office equipment, motor vehicles furniture and fittings, etc.

Current Assets:

Current assets are things or properties used in the business for a short period of time and their values usually change from time to time e.g. stock of raw materials, stock of finished goods, debtors, cash at bank, cash in hand, etc.

Liabilities:

These are debts owed by the organisation to individuals, firms, or corporate bodies. Liabilities that will be settled by the business for over one year are called long-term liabilities e.g. mortgage loans. While liabilities that will be settled within one year are called current liabilities e.g. creditors, accrued expenses, bill payable bank overdraft, etc.

Capital:

This represents the contributions of the owner of the business and any other amount introduced into the business at intervals by the owners. Working capital is the excess of current assets over current liabilities, that is when the total of current assets is greater than the total of current liabilities = i.e (current asses – current liabilities).

Example:

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