Login | Register

Welcome, Guest. Please login or register.

July 07, 2020, 02:38:33 am

Author Topic: help with balance sheet question  (Read 819 times)  Share 

0 Members and 1 Guest are viewing this topic.

spursy

  • Forum Regular
  • **
  • Posts: 65
  • Respect: +2
help with balance sheet question
« on: November 01, 2019, 11:58:02 am »
0
hey guys i need help with this balance sheet question
For the bank under current assets the answer is $28580 but i dont know how they got that, can someone pls help

Seamus Wong

  • Forum Obsessive
  • ***
  • Posts: 200
  • Respect: +54
Re: help with balance sheet question
« Reply #1 on: November 01, 2019, 03:07:45 pm »
0
hey guys i need help with this balance sheet question
For the bank under current assets the answer is $28580 but i dont know how they got that, can someone pls help

What is the reporting period?
2018-2019
[Business Management] [Methods]
[Accounting] [Algorithmics] [Economics] [English Language]

ATAR: 97.65


2020-2023
Monash Uni - Bachelor of Commerce (Finance) / Bachelor of CompSci (Data Science)

Seamus Wong

  • Forum Obsessive
  • ***
  • Posts: 200
  • Respect: +54
Re: help with balance sheet question
« Reply #2 on: November 01, 2019, 03:24:35 pm »
0
I assume it is one month.

Here all all the debit and credit entries to the bank account:

Debits

- Capital $20,000
- Loan - Bank of Tasman $55,000

Credits

- Bank $300
- Interest Expense $80
(the above two credit entries seem to not have been included in the answer that you have provided)
- Shop Fittings/GST clearing $38,500
- Rent Expense/GST clearing $7920

Total Debits - Total Credits = 75,000 - 46,800 = Balance of 28,200

If the Bank - $300 and interest expense - $80 was not included, then the balance would equal 28,580. Idk why they didn't include them though in their answer. Maybe the actual answer is wrong or maybe I am wrong with assuming that they would be recorded.
2018-2019
[Business Management] [Methods]
[Accounting] [Algorithmics] [Economics] [English Language]

ATAR: 97.65


2020-2023
Monash Uni - Bachelor of Commerce (Finance) / Bachelor of CompSci (Data Science)

cotangent

  • Trailblazer
  • *
  • Posts: 26
  • Respect: 0
Re: help with balance sheet question
« Reply #3 on: November 01, 2019, 04:39:30 pm »
+1
I assume it is one month.

Here all all the debit and credit entries to the bank account:

Debits

- Capital $20,000
- Loan - Bank of Tasman $55,000

Credits

- Bank $300
- Interest Expense $80
(the above two credit entries seem to not have been included in the answer that you have provided)
- Shop Fittings/GST clearing $38,500
- Rent Expense/GST clearing $7920

Total Debits - Total Credits = 75,000 - 46,800 = Balance of 28,200

If the Bank - $300 and interest expense - $80 was not included, then the balance would equal 28,580. Idk why they didn't include them though in their answer. Maybe the actual answer is wrong or maybe I am wrong with assuming that they would be recorded.

I think because the business is just starting out and its the first of the month, you wouldn't include loan repayments and interest payments when calculating the bank amount.
2019: Accounting [45]
2020: Methods [?] Specialist [?] Physics [?] Chemistry [?] English [?]

Seamus Wong

  • Forum Obsessive
  • ***
  • Posts: 200
  • Respect: +54
Re: help with balance sheet question
« Reply #4 on: November 01, 2019, 05:04:26 pm »
0
I think because the business is just starting out and its the first of the month, you wouldn't include loan repayments and interest payments when calculating the bank amount.

Oh yeah you are right. I guess the question would have just asked to calculate the bank figure as at 1 April, not the 30th.
2018-2019
[Business Management] [Methods]
[Accounting] [Algorithmics] [Economics] [English Language]

ATAR: 97.65


2020-2023
Monash Uni - Bachelor of Commerce (Finance) / Bachelor of CompSci (Data Science)

spursy

  • Forum Regular
  • **
  • Posts: 65
  • Respect: +2
Re: help with balance sheet question
« Reply #5 on: November 02, 2019, 10:21:56 am »
0
yea sorry it says as at april 1st so we wouldn't include the interest and loan repayments. One more question, why is the $9000 we take out from loan legends not included in bank. Is this on credit?

cotangent

  • Trailblazer
  • *
  • Posts: 26
  • Respect: 0
Re: help with balance sheet question
« Reply #6 on: November 02, 2019, 11:00:04 am »
0
yea sorry it says as at april 1st so we wouldn't include the interest and loan repayments. One more question, why is the $9000 we take out from loan legends not included in bank. Is this on credit?

Because Its a personal loan, so the money would've gone into the owners bank account not the business's.
2019: Accounting [45]
2020: Methods [?] Specialist [?] Physics [?] Chemistry [?] English [?]