Whenever we do final accounts in class i generally get all the figures right when adding etc., but sometimes i leave out or misplace figures (e.g. bank overdraft, still unsure if its current assets or liabilities) and that affects my "Capital employed" and "Total Net Assets". Does anyone have notes of the format that show where every possible figure has come up (as in anything that goes under current assets, is there with every other possible current asset)?
Simple couple of rules
Simple couple of rules when doin this topic
1. Everything in DR column is either asset or expense, everything in CR column either gain or liability
2. Cross off every figure once you write it down. All notes/adjustments should go in once to trad prof and loss acc and a second time into bal sheet, so one tick beside each figure in question and two ticks beside everything in adjustments.
Bank overdraft is a current liability as you have to pay it to your creditors! The business less stress more success book I found so helpful for this type of thing! I tried making a list of current assets and current liabilities and tried to learn them off but your so much better just understanding what everything means! :) liabilities you have to pay and assets are what you already have!