Initial balance sheet before any transactions

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.

Thank you for your reply. Say if that was the initial balance at

This is for a business plan that I have to produce for a project.

Thank you again for your reply.

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.

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.

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.

Thank you very much for your replies!

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.

It's best to show different sources of income separately.

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?

Yes - see

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)?

That would depend on if money had been received.

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.

Why are you interested? You don't seem to have studied accounts.

I am independently trying to learn about accounting at home.

don't know how

you'll be in a

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