1. FSTP Session 3

2. Objectives By the end of the session learners will be able to : 1.Correctly identify the account balances that are transferred to the Statement of financial position 2.Using a Statement of Financial Position proforma produce a correct SOFP using information from the Extended Trial Balance NB: Understand balances that could appear but are covered in ACPR in relation to the statement of financial position The Statement of Financial Position

3. Which of these balances go to SFP? Capital 32,645 Drawings 3,892 Rent & Rates 1,563 Lighting & heating 488 Insurance 124 Wages and salaries 4,194 Purchases 21,102 Sales 34,416 Creditors 2,936 Premises 20,500 Opening stock 5,025 Cash at bank 6,216 Cash in hand 79 Debtors 6,814

4. Which of these balances go to SFP? Capital 32,645 Drawings 3,892 Rent & Rates 1,563 Lighting & heating 488 Insurance 124 Wages and salaries 4,194 Purchases 21,102 Sales 34,416 Creditors 2,936 Premises 20,500 Opening stock 5,025 Cash at bank 6,216 Cash in hand 79 Debtors 6,814

5. Non-current Assets Tangible & Non Tangible Current Assets Current Liabilities Non-current Liabilities Capital Format of The Statement of Financial Position

6. Statement of Financial Position Format Non-current Asset Current Asset Current Liability Non-current Liability Capital

7. Format of The Statement of Financial Position

9. Stock Trade Format of The Statement of Financial Position Non-current Assets Land and Buildings Current Assets StockTrade receivables Cash and Bank Prepayments Current Liabilities Trade Payables AccrualsOverdraft Non-current Liabilities Long Term Bank Loan CapitalDrawings

10. In which statement does closing stock appear in Final Accounts? Profit or Loss Financial Position Both Answer: BOTH Format of The Statement of Financial Position

12. Capital

13. Preparing a Statement of Financial Position will be from a given balancing adjusted trial balance, and an outline pro-forma will be given. It may require accounts to be combined before completing pro-forma (for example cash + bank = cash and cash equivalents). Trial balance accounts may need translation into the pro-forma names provided (for example purchases ledger control account needs to be shown as trade payables). Notes for the Assessment

14. May include balances on accounts that are dealt with in ACPR, such as non-current assets, accumulated depreciation, allowance for doubtful debts (should be deducted from sales ledger control account to give trade receivables), accruals, for example. Understand that the trial balance may include accounts such as VAT, loans, bank which can appear on either side of the trial balance, and treat such balances correctly in the pro-forma. Notes for the Assessment