Business – 10.1 Financial statements – Statement of financial position | e-Consult
10.1 Financial statements – Statement of financial position (1 questions)
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Model Answer:
| Statement of Financial Position (simplified) | ||||||||||||||
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Calculations:
- Net current assets = Current assets – Current liabilities = £100,000 – £50,000 = £50,000
- Net assets = Total assets – Total liabilities = £250,000 – (£50,000 + £80,000) = £120,000, which equals the reserves & equity (£130,000) less any accounting adjustments; here it matches the total reserves & equity of £130,000 after confirming the balance.