STATEMENT

OF FINANCIAL
POSITION
CHAPTER 1
STATEMENT OF FINANCIAL
POSITION
Also called as BALANCE SHEET or
STATEMENT OF CONDITION
Provides information on Assets,
Liabilities and Equity.
ABC Co.’s Post Closing Trial
Balance
Accounts
 Cash
 Accounts Receivable
 
Allowance for Bad Debts
 
Notes Receivable (Trade)
 Inventory
 Prepaid Supplies
 Prepaid Rent
 Prepaid Insurance
 Land
 Building
Accounts
 Accumulated Depreciation –
Bldg.
Equipment
Accumulated Depreciation –
Equipment
 Accounts Payable
 Notes Payable (Short Term)
 Notes Payable (Long Term)
 Interest Payable
 Salaries Payable
 Utilities Payable
 Unearned Income
 Owner’s Capital
Arrange all accounts into
different line items.
Group the accounts with similar nature.
 ASSETS
PROPERTY, PLANT AND
CASH AND CASH EQUIVALENT EQUIPMENT
Cash XX.XX Land XX.XX
Cash Equivalent - Building XX.XX
CASH AND CASH EQUIVALENT XX.XX Accumulated Depreciation –
Bldg. (XX.XX)
Equipment XX.XX
TRADE AND OTHER RECEIVABLES
Accumulated Depreciation –
Accounts Receivable XX.XX
Equipment (XX.XX)
Allowance for Bad Debts (XX.XX)
PROPERTY, PLANT AND EQUIPMENT XX.XX
Notes Receivable XX.XX
TRADE AND OTHER RECEIVABLES XX.XX

Inventory XX.XX

PREPAID ASSETS
Prepaid Supplies XX.XX
Prepaid Rent XX.XX
Prepaid Insurance XX.XX
PREPAID ASSETS XX.XX
 LIABILITIES
TRADE AND OTHER PAYABLES EQUITY
Accounts Payable XX.XX Owner’s Capital XX.XX
Interest Payable XX.XX
Salaries Payable XX.XX
Utilities Payable XX.XX
Unearned Income XX.XX
TRADE AND OTHER PAYABLES XX.XX

Notes Payable (Short Term)

XX.XX
CURRENT AND NON-CURRENT
PORTIONS OF LONG-TERM
BORROWINGS
Notes Payable (Current Portion) XX.XX
Notes Payable (Non-Current Portion) XX.XX
XX.XX
 Create a Header
Company Name, Type of Financial Statement,
Period Covered
 ABC Co.
Statement of Financial Position
As of December 31, 2019
 Create a SUMMARY of all
the grouped data.
ASSETS (Current and Non-Current), LIABILITIES
(Current and Non-Current), EQUITY
 ABC Co.
Statement of Financial Position
As of December 31, 2019
ASSETS
Current Assets
Cash and cash equivalent XX.XX
Trade and other receivables XX.XX
Inventory XX.XX
Prepaid Assets XX.XX
Total Current Assets XX.XX

Non-Current Assets XX.XX

Property, Plant and Equipment
Total Non-Current Assets XX.XX

TOTAL ASSETS XX.XX

LIABILITIES
Current Liabilities
Trade and other payables XX.XX
Short-Term Borrowings XX.XX
Current Portion of Long Term Borrowings XX.XX
Total Current Liabilities XX.XX

Non-Current Liabilities XX.XX

Long Term Borrowings
Total Non-Current Liabilities XX.XX

TOTAL LIABILITIES XX.XX

 EQUITY
Owner’s Equity
Owner’s Capital XX.XX
Total Owner’s Equity XX.XX

TOTAL LIABILITIES AND EQUITY XX.XX

NOTE: TOTAL ASSETS SHOULD BE

EQUAL TO TOTAL LIABILITIES AND
EQUITY
 STATEMENT OF
NEXT TOPIC:
COMPREHENSIVE INCOME