It shows the details of the Assets, Liabilities, and Capital at a particular point in time.
Example 1:
Example 2:
Example 3:
Example 4:
Transactions during first week of January 2014
- Sold goods on credit £150
- Stock reduced by £150
- Debtors increased by £150
- Withdrew £300 cash from the bank
- Cash at Bank reduced by £300
- Cash at Hand increased by £300
- Bought goods for £650 paying by cheque
- Cash at Bank reduced by £650
- Stock increased by £650
- The owner invested £1,500 cash into the business
- Capital increased by £1,500
- Cash at Hand increased by £1,500
