Finance – Statement of Financial Position (aka the
Balance Sheet)
Exercises – Work through the exercises in the booklet (at your own speed)
The spice level indicates the level of difficulty
Q1. Correct the definitions below

A Statement of Financial Position is a financial statement showing the value of a business over a
period of time.

A non-current liability is anything a business owns for less than a year.

Net Assets is the total value of a business assets minus the current liabilities
Q2. Circle the current assets below:
Motor Vehicles
Long term loan
Cash
Receivables
Payables
Payables
Overdraft
Machinery
Inventory
Capital
Q3. Why should a Statement of Financial Position balance?
1
Q4. Complete the gaps (both titles and figures) on the Statement of financial Positions given:
Statement of Financial Position of ABC Ltd. as at 31/12/19
$ ‘000
$ ‘000
Assets
Machinery
Vehicles
Land
160
78
420
Current Assets
Cash
8
28
53
Payables
Overdraft
(50)
(89)
Non-Current Liabilities
15 year loan
(360)
(360)
Inventory
Less Liabilities
Net Assets
Equity
Retained Profit
Total Equity
62
2
Q5. Complete the Statement of Financial Position for Bob the Builder Ltd on the 31st Dec 2020. (Use the
figures below)
$ ‘000
500
390
60
150
300
300
200
300
600
Machinery
Motor Vehicles
Inventory
Receivables
Cash
Payables
20 year loan
Capital
Retained Profits
Title: ……………………………………………………………………………………………………………………..
$ ‘000
$ ‘000
3
Q6. Complete the Balance Sheet for Josh’s Galoshes Ltd on the 31st Dec 2021. (Use the figures below)
$
Revenue
110,500
Advertising Expenses
1 800
Wages
24 700
Insurance
3 000
Business Tax
5 760
Vehicles Expenses
6 200
Bank Charges
1 200
Premises
20 550
Fixtures and Fittings
9 900
Vehicles
14,110
Receivables
2 100
Bank
2 400
Cash
430
Payables
2 340
Capital
29 410
Owner Drawings
9 000
Inventory
2 500
Retained Profit
29 240
Hint: Think carefully about which items belong in the Balance Sheet!
4
Josh’s Galoshes Statement of Financial $
$
Position as at December 31, 2021
Non-Current Assets
Current Assets
Current Liabilities
Net Current Assets
Equity
Total Equity
5