Learning Objective

To know what a Balance Sheet consist of

Hi! I am Mr Jack.I own a pizza

shop

Assets

Hi Mr Jack ! Three BBQ chicken pizzas. Charge it to ABC Pty Ltd. Send us an invoice.

Sure no worries.

Liabilities

Mrs Green I need some tomatoes .

I’ll pay later. Send me an invoice.

Okay Mr Jack…Is

this a tomato?

No honey, it’s the red round fruit behind

you.

I need a loan to renovate

my pizza shop

Here’s a dollar

Come on! I need at least

$10,000

Mortgage on the shop is $500 a week…Damn.

I think I will just burn the

mortgage bill.

Assets LiabilitiesCash $2,000 Creditors $300Debtors $100 Bank loan $5,000Ingredients $800 Mortgage $10,000Refrigerator $2,000Pizza oven $3,000 ProprietorshipDelivery car $8,000 Capital - Mr Jack $600

$15,900 $15,900

Mr Jack's Pizza ShopBalance Sheet as at 30 June 2011

Give me some examples of Assets and Liabilities of the school.

Discussion

Give me some examples of Assets and Liabilities of a CD shop.

Proprietorship/Owners’ Equity

$55,850 - $12, 050 = $43, 800

Assets $55,850

Liabilities $12,050

Taminmin College has $70,000 worth of assets and its liabilities amounts to $40,000. What is the amount of the Proprietorship/Owners’ Equity?

Activity

Assets - Liabilities = Proprietorship/Owners’ Equity

Assets LiabilitiesCash $2,000 Creditors $300Debtors $100 Bank loan $5,000Ingredients $800 Mortgage $10,000Refrigerator $2,000Pizza oven $3,000 ProprietorshipDelivery car $8,000 Capital - Mr Jack $600

$15,900 $15,900

Mr Jack's Pizza ShopBalance Sheet as at 30 June 2011

Classify each item to Assets or Liabilities and work out the Proprietorship: (1)Machinery $3000, (2)Debtors $5000, (3)Inventory $2000, (4)Westpac account $10,000, (5)Bank loan $8000, (6)Bank overdraft -ANZ $500 and (7)Creditors $2000.

Assessment

A bank overdraft is when someone is able to spend more than what is actually in their bank account.

For example: I have $0 in my bank, but I still withdraw $20 from the ATM. My bank overdraft is $20.

What is a bank overdraft?

The quantity of goods and materials on hand.

For example: Record of the amount of ingredients (to make pizza) kept in the storeroom or the refrigerator.

What is inventory?

Assets LiabilitiesBank - Westpac $10,000 Bank overdraft -Anz $500Debtors $5,000 Creditors $2,000Inventory $2,000 Bank loan $8,000Machinery $3,000

ProprietorshipCapital - Mr Jack $9,500

$20,000 $20,000

Mr Jack's Pizza ShopBalance Sheet as at 30 June 2011