How to prepare a balance sheet?

Question

can any one help me this as im completely confused. I need 2 prepare a balance sheet as at 31st December 2007.

the trial balance for the business is:

£ £

sales 244,275

capital 196,375

creditors 3,550

opening stock 1,450

rates 3,050

Motor expenses 4,025

purchses 67,000

insurance 2, 825

fixtures & fitting 32,500

motor vehicles 15,000

office equipment 14,000

debtors 15,000

bank 4,750

wages & salaries 75,000

premises 186,200

repairs & renewals 850

advertising 4,900

drawings 17,650

444,200 444,200

closing stock of food & beverages at 31st december 2007 was £2,975

Answer 1

A quick answers is the balance sheet needs to be equal on both sides so the debits should equal the credits.  You will need that information to make sure you have done this correctly.  It is important to remember assets = Liabilites + Owners Equity.

Since the capital is 196375, that means the liabilities are 247825.  Though you need to be more specific with you account titles for me to give you a more acurate answer.  

For example is bank money you owe or have in the bank?

Answer 2

balance sheet as at 31st December 2007.

Non-current assets-

premises 186,200

fixtures & fitting 32,500

motor vehicles 15,000

office equipment 14,000

Sub-total £247,700

Current assets-

stock £2,975

debtors 15,000

bank 4,750

Sub-total £22,750

Total assets £270,425

Liabilities & Shareholders' equity

creditors 3,550

capital 196,375

drawings (17,650)

Retained earnings 88,150

Total liabs & SE £270,425

Answer 3

sound like a homework problem LOL,

use the basic accounting equation and you should be able to figure it out

ASSETS=LIABILITIES+EQUITY(CAPITAL)

try to see how you can break it down and you will know if you are right or wrong because it MUST balance @ the end.

Good Luck