Accounting Business Reporting for Decision Making

132 Accounting: Business Reporting for Decision Making

ILLUSTRATIVE EXAMPLE 4.4

Worksheet for Advantage Tennis Coaching

September

2016 Cash

Accounts

receivable

Office

furniture

Office

equipment

Accounts

payable Loan Capital

Profit or

loss

1 20 000 20 000

3 (500) 500

4 3 000 3 000

5 10 000 10 000

7 (1 000) (1 000)

8 No transaction

9 5 000 5 000

10 (2 200) (2 200)

12 (1 800) 1 800

14 (450) (450)

15 3 800 3 800

16 (280) (280)

17 (2 000) (2 000)

19 No transaction

20 1 400 1 400

21 500 500

25 (6 000) 6 000

28 50 000 50 000

Total 71 270 6 800 3 200 6 500 1 400 50 000 20 000 16 370

Once all the transactions have been entered into the worksheet, each of the columns should be

summed, and the total of the asset columns should be the same as the total of the liability and equity

totals. In illustrative example 4.4, the assets total $87 770, and the liabilities and equity total $87 770.

We can now prepare the statement of profit or loss and balance sheet from this summarised information,

based on the column totals at the bottom of the worksheet (see illustrative example 4.5).

ILLUSTRATIVE EXAMPLE 4.5

Statement of profit or loss and balance sheet for Advantage Tennis

Coaching

Advantage Tennis Coaching

Statement of profit or loss for one month ending 30 September 2016

Income

Coaching fees $22 300

Expenses

Website development

Wages

Telephone

Rent

Electricity

$ 2 000

2 200

280

1 000

450 5 930

Profit $16 370