The Biscuit Factory

This is Oscar. He owns his own biscuit

factory and he needs your help. He
wants to complete a balance sheet for
the year, however he hasn’t got a clue
where to start.

Using your knowledge of balance sheets,

let’s help Oscar with his problem and
help him to complete his balance sheet.

Oscar has the following fixed assets:

• Factory premises = £75,000

Use this information
Fixtures and fittings = £5,000
to fill in the missing
•

He has the following current assets:

• Stock = £15,000
numbers on the
Debtors = £1,000
balance sheet.
•
• Bank = £3,000
• Cash = £1,000

He has the following current liabilities:

• Creditors = £7,000
• Overdraft = £4,000

Oscar’s business is financed by the following:

Long term liabilities:

Bank loan = £10,000
Mortgage = £60,000

Capital and reserves:

Capital = £19,000
 The Biscuit Factory
Balance Sheet 1 April

£ £
Fixed Assets
Shop premises ______________________
Fixtures and fittings ______________________
Total ______________________

Current Assets
Stock ______________________
Debtors ______________________
Bank ______________________
Cash ______________________
Total ______________________

Current Liabilities
Creditors ______________________
Overdraft ______________________
Total ______________________

Net Current Assets ______________________

Net Assets Employed ______________________

Financed By:
Long Term Liabilities
Bank loan ______________________
Mortgage ______________________
Total ______________________

Capital and Reserves

Capital ______________________
Capital Employed _______________________

Are your Net Assets Employed

Pssst! The capital employed
and Capital Employed figures the
figure is calculated by adding
same? If they are congratulations!
your total long term liabilities to
Your balance sheet balances!
your total capital and reserves!