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    I am a sport student and my assignment is creating a hypothetical business. Unfortunatley my group were all unsure about the financing part so I decided to have a go at it. I have done a cashflow forecast, budget sheet and a profit and loss account for each year. However, we are also required to a create a balance sheet. I believe they are done at a certain period. I do not know when to do the balance sheet, in the middle of the year, at the start etc. I have looked countless times on the internet and have a rough idea of the certain aspects but if some could work it out for or something I would really appreciate this.

    Below I have provided the expenditure for year one, to give an idea of the costs. I am really really struggling. I need it done asap.

    Office supplies 314.00
    Salaries 79,500
    Travel 800.00
    Utilities 384.00
    Rent 12,935
    Furnishings 1,152
    Company Incorporation 90.00
    Insurance 1,155
    Advertising/Marketing 280.00
    Equipment 12,542
    Training (CPD) 2,594
    Maintenance 1,395

    Total Expenditure 113,141

    SURPLUS / (DEFICIT) 2,859


    I am not sure this will be useful as this is at the end of the year, would I need to provide these figures at the end of the month or something. If someone could do it for me as I am sure there will be someone who can do it at the back of their hand. I would quite frankly pay then cos im that sick of it now. I have never done financing. The cashflow and profit and loss was just about the right level for me but this I just cant do.

    Todd
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    you can do a balance sheet at any point of the year. It isjust a "snap shot" of the company at a given point but in most cases it is done at the end of the financial year.

    However to do a Balance Sheet (now called Statement of Financial Position), you would need more details than the figures you have provided as it includes things such as capital, and also lists all assets and outstanding liabilites.
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    The business is basic, a voluntary organisation grant aided from a national governing body of sport. The services are free.

    The figures I have provided is as much as it gets.

    From those figures I can probably identify the assets

    Fixed= desks, chairs, filing cabinet, printer, 12 laptops and a motor vehicle

    Current= closing balance at the end of the month when producing the balance sheet? office supplies such as print paper, notepads, pens etc

    current liabilities= insurance, salaries, rent

    long term liabilities= i dont think there is any, we dont take any loans or borrow money

    Equity part- not sure about this part, is this the final amount from from the profit and loss? not sure whats in this part

    Please help and clarify what i have written.

    Todd
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    Insurance Rent and Salaries are not current liabilites, unless they are accruals. They are things that should be on the profit and loss.

    Liablites are things like accounts payable any money you owe for things bought on credit and things like that.

    Current assets should include things like cash at bank, trade reciveables (although you wont have these since services are free).
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    Ok, well I have not the slightest confidence in producing such document. Could you recommended anyway that maybe able to help me out? I just do not know where to start. It seems you didnt comment on the fixed assets so thats a start.

    Looking at the cashflow, it shows opening balance and closing balance so is this money in the bank. I could just do with showing someone my cashflow forecast etc so someone can help.
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    (Original post by toddsheffield)
    I am a sport student and my assignment is creating a hypothetical business. Unfortunatley my group were all unsure about the financing part so I decided to have a go at it. I have done a cashflow forecast, budget sheet and a profit and loss account for each year. However, we are also required to a create a balance sheet. I believe they are done at a certain period. I do not know when to do the balance sheet, in the middle of the year, at the start etc. I have looked countless times on the internet and have a rough idea of the certain aspects but if some could work it out for or something I would really appreciate this.

    Below I have provided the expenditure for year one, to give an idea of the costs. I am really really struggling. I need it done asap.

    Office supplies 314.00
    Salaries 79,500
    Travel 800.00
    Utilities 384.00
    Rent 12,935
    Furnishings 1,152
    Company Incorporation 90.00
    Insurance 1,155
    Advertising/Marketing 280.00
    Equipment 12,542
    Training (CPD) 2,594
    Maintenance 1,395

    Total Expenditure 113,141

    SURPLUS / (DEFICIT) 2,859


    I am not sure this will be useful as this is at the end of the year, would I need to provide these figures at the end of the month or something. If someone could do it for me as I am sure there will be someone who can do it at the back of their hand. I would quite frankly pay then cos im that sick of it now. I have never done financing. The cashflow and profit and loss was just about the right level for me but this I just cant do.

    Todd
    To prepare a balance sheet at the year end you will need to link it to the profit and loss account (as a voluntary organization you should really label this as an Income and Expenditure Statement, and rename the profit or loss as a surplus or a deficit) and cashflow you have already prepared.

    E.g.

    The Cash flow will show purchases of office equipment that will not be in the Profit and Loss

    The profit and Loss may have depreciation not in the cashflow. The difference is the net fixed asset of office equipment.

    The profit and loss may have a higher income than reflected in the receipts of the business in the cashflow, the difference would be a current asset, debtors, in the balance sheet.

    The bank/cash figure at the end of the period cashflow should be in the balance sheet as a current asset.

    The difference between the profit and loss expenses and those in the cashflow should be creditors.

    If the cashflow has grants etc received you will need to consider, based on the terms of the grants, whether these are of a revenue nature or a capital nature e.g. what period they cover,

    Thinking through the idea that every debit has a credit, you should be able to match between the items in each statement to determine those differences/ balances that need to be reflected in your year end balance sheet.

    The above ought to work for year one, if you need to prepare similar for year two the process is slightly more difficult as you need to reverse the opening debtors/ creditors against the profit and loss and then recalculate through.

    If you have any accounts ability the under-noted approach would work and would have the advantage of acting as a check re the consistency of the whole, post debits as positives and credits as negatives.

    If you prepare each year as an Extended Trial Balance on excel, using one column for bank transactions, you should be able to derive all three statements required from the one analysis, the end resultants making up the profit and loss and balance sheet figures and the cash column giving the cashflow figures.

    It is really hard to give advice as I do not know the extent, if any, of your accountancy knowledge. If you posted up both the Income and expenditure and the cashflow re year one I might be able to advise. (Please make them clearer by ignoring the decimal points and you have missed the income from your analysis)

    If you do I will try to look at tomorrow evening, thereafter I will send you an extortionate invoice for my professional services.
 
 
 
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