Initial balance sheet before any transactions

Hi everyone
I was wondering, if the source of a finance at startup is: directors - 100,000 bank - 50,000 business angel - 100,000 total = 250,000
Would the intial balance sheet look like this?:
Assets: Bank - 250,000
Liabilities: Loan - 50,000
Net Assets: 200,000
Capital; 200,000
As I think the capital value should be 250,000 but I don't know how to consider the loan. Can someone please explain this to me?
Thank you
Paul
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On 23 Apr 2007 06:36:52 -0700, snipped-for-privacy@googlemail.com wrote:

The initial balance sheet would have no entries in.
You don't say which money is for shares or loans.
I'd get an accountant in as quick as possible otherwise you'll be in a mess.
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Peter Saxton from London
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Thank you for your reply. Say if that was the initial balance at 01/01/01 and stayed like that until 31/12/01, then what would the Balance Sheet look like?
This is for a business plan that I have to produce for a project.
Thank you again for your reply.
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On 23 Apr 2007 09:08:17 -0700, snipped-for-privacy@googlemail.com wrote:

The balance sheet as you stated is correct. I agree that the loan is long term and previously long term liabilities used to be shown as part of capital but it is felt that net assets is a more important figure now.
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Peter Saxton from London
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Thanks for your answer as I was unsure whether the loan should have been included in the capital, and therefore the capital would be 250,000.
Also, just to confirm, premises rent and vehicle rent should be classified as current liabilities right, and not assets?
Cheers again.
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On 23 Apr 2007 09:32:05 -0700, snipped-for-privacy@googlemail.com wrote:

They're expenses in the P & L A/c. If they have not been paid then they should be shown as current liabilities in the balance sheet.
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Peter Saxton from London
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Thank you very much for your replies!
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Thank you very much for your replies, they have been very helpful.
Sorry, I have another question. For example, for a catering business, in the P&L A/C, under Sales, would this only include sales or would other income also be included here such as money received for advertisement?
Thanks again.
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On 24 Apr 2007 08:11:58 -0700, snipped-for-privacy@googlemail.com wrote:

It's best to show different sources of income separately.
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Peter Saxton from London
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Carrying on from the previous example, were the business has at start up 200,000 and a bank loan of 50,000.
At the end of the year in the balance sheet, the initial opening capital is 200,000. However, under current assets, how do you calculate the bank figure? Am I right in saying its 250,000 (or is it 200,000? ) + profit/loss (from cash flow)?
Thank you Peter
btw, are you an accountant by profession?
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On 26 Apr 2007 07:27:33 -0700, snipped-for-privacy@googlemail.com wrote:

250,000 is the money received so that is the bank figure. There's no profit or loss.

Yes - see www.petersaxton.co.uk
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Peter Saxton from London
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Sorry, I meant to add, if a profit was made. Then would the bank value be 250,000 (not 200,000) + profit (from cash flow)?
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On 26 Apr 2007 15:12:45 -0700, snipped-for-privacy@googlemail.com wrote:

That would depend on if money had been received.
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Peter Saxton from London
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Thank you.
I ask this as the current assets + current liabilities = capital.
However, if I take fixed assests' NPV + current assets + current liabilities = more than capital.
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On 27 Apr 2007 01:30:03 -0700, snipped-for-privacy@googlemail.com wrote:

Why are you interested? You don't seem to have studied accounts.
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Peter Saxton from London
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I am independently trying to learn about accounting at home.
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On 27 Apr 2007 04:15:04 -0700, snipped-for-privacy@googlemail.com wrote:

But a book like Frank Wood. That will teach you the principles in the correct way rather than jumping in at the middle.
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Peter Saxton from London
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