Chapter 1.

4
The statement of financial
position
HOMEWORK SOLUTION
Lesson objective

1. To define the term “statement

of financial position”

2. To calculate the total value of

assets, liabilities and capital.

3. To prepare simple statement of

financial position.
Statement of financial position

➢A document detailing a
business’s assets, liabilities and
Capital at a particular date.
➢Prepared at the end of a
financial period.
➢Otherwise called as balance
sheet.

1. To define the term “statement of financial position”

Statement of financial position
format
• Remember, the three elements of
accounting!!
• That is, Assets, liabilities and capital

• Now write these three elements in a

vertical order.
• That is,
Assets
Liabilities
Capital
1. To define the term “statement of financial position”
 Statement of financial position
format
Details $ $ $
Assets: (List all assets)
Machinery Xxx
Premises Xxx
Cash Xxx
Total assets: Xxx
Liabilities & Capital:
Liabilities: (List all liabilities)
Bank loan Xxx
Trade payable Xxx
Total Liabilities Xxx
Capital Xxx
Total liabilities + Capital Xxx
Statement of financial position
format

3. To prepare simple statement of financial position.

Statement of financial position
format Details $ $ $
Assets: (List all assets)

Liabilities & Capital:

Homework: Page 8
Question 5 and 6

3. To prepare simple statement of financial position.

 Statement of financial position
format
Details $ $ $
Assets: (List all assets)
Machinery Xxx
Premises Xxx
Cash Xxx
Total assets: Xxx
Liabilities & Capital:
Liabilities: (List all liabilities)
Bank loan Xxx
Trade payable Xxx
Total Liabilities Xxx
Capital Xxx
Total liabilities + Capital Xxx