STATEMENT OF

FINANCIAL POSITION

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 LA JOLLA SURF CLUB
STATEMENT OF FINANCIAL

POSITION

Also known as the balance sheet. This statement

includes the amounts of the company’s total assets,
liabilities, and owner’s equity which in totality
provides the condition of the company on a specific
date

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 LA JOLLA SURF CLUB
PERMANENT

ACCOUNTS
As the name suggests, these accounts are permanent in a sense that their
balances remain intact from one accounting period to another. Examples of
permanent account include Cash, Accounts Receivable, Accounts Payable,
Loans Payable and Capital among others. Basically, assets, liabilities and equity
accounts are permanent accounts. They are called permanent accounts
because the accounts are retained permanently in the SFP until their balances
become zero. This is in contrast with temporary accounts which are found in
the Statement of Comprehensive Income (SCI). Temporary accounts unlike L J

permanent accounts will have zero balances at the end of the accounting
 LA JOLLA SURF CLUB
CONTRA ASSETS

CONTRA ASSETS ARE THOSE ACCOUNTS THAT ARE PRESENTED UNDER

THE ASSETS PORTION OF THE SFP BUT ARE REDUCTIONS TO THE

COMPANY’S ASSETS. THESE INCLUDE ALLOWANCE FOR DOUBTFUL

ACCOUNTS AND ACCUMULATED DEPRECIATION. ALLOWANCE FOR

DOUBTFUL ACCOUNTS IS A CONTRA ASSET TO ACCOUNTS RECEIVABLE.

THIS REPRESENTS THE ESTIMATED AMOUNT THAT THE COMPANY MAY

NOT BE ABLE TO COLLECT FROM DELINQUENT CUSTOMERS. ACCUMULATED

DEPRECIATION IS A CONTRA ASSET TO THE COMPANY’S PROPERTY,

PLANT AND EQUIPMENT. THIS ACCOUNT REPRESENTS THE TOTAL

AMOUNT OF DEPRECIATION BOOKED AGAINST THE FIXED ASSETS OF THE

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COMPANY.
 LA JOLLA SURF CLUB
TWO FORMS OF

STATEMENT OF

FINANCIAL POSITION

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 LA JOLLA SURF CLUB
REPORT FORM

01
form of the SFP that shows asset accounts first and then
liabilities and owner’s equity accounts after.

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 LA JOLLA SURF CLUB
ACCOUNT FORM

02
.A form of the SFP that shows assets on the left side and
liabilities and owner’s equity on the right side just like the debit
and credit balances of an account

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CLASSIFICATION
OF ASSETS
CURRENT ASSETS
Assets that can be
Examples include Cash,
realized (collected, sold,
Accounts Receivable,
used up) one year after
Merchandise Inventory,
year-end date.
Prepaid Expense, etc.

Current Assets are arranged

based on which asset can be
realized first (liquidity). 
Current Assets are also called
short term assets.
 NON CURRENT
ASSETS
Assets that cannot be realized (collected, sold, used up)
one year after yearend date. Examples include Property,
Plant and Equipment (equipment, furniture, building,
land), Long Term investments,Intangible Assets etc.

Non Current Assets are also called long term assets

CLASSIFICATION
OF  LIABILITIES
CURRENT   LIABILITIES
Liabilities that fall due
Examples include Notes
(paid, recognized as
Payable, Accounts Payable,
revenue) within one year
Accrued Expenses (example:
after yearend date.
Utilities Payable), Unearned
Income, etc.

Current Assets are also called

short term liabilities
 NON CURRENT 
LIABILITIES
Liabilities that do not fall due (paid, recognized as
revenue) within one year after year-end date. Examples
include Loans Payable, Mortgage Payable, etc.

Non Current Liabilities are also called long term

liabilities
 Let's have some

PRACTICE
 LEARNING IS FUN COMPANY
HAD CURRENT ASSETS
AMOUNTING TO PHP 100,000.
NONCURRENT ASSETS FOR THE
YEAR TOTALED PHP 76,000.
DIETER F. UCHTDORF

HOW MUCH IS THE COMPANY’S

TOTAL ASSETS?
HAPPY SELLING COMPANY’S
TOTAL LIABILITIES AMOUNTED
PHP 10,000. TOTAL EQUITY HAD
AN ENDING BALANCE OF PHP
20,000. HOW MUCH IS TOTAL
ASSETS?
HAPPY SELLING’S
HAD THE
FOLLOWING
ACCOUNTS AT
YEAR END: CASH-
250,000,
ACCOUNTS
PAYABLE-70,000,
PREPAID EXPENSE-
15,000. COMPUTE
FOR THE
COMPANY’S
CURRENT ASSETS

.
HAPPY SELLING’S ACCOUNTS
RECEIVABLE AMOUNTED TO PHP
500,000. PREPAID EXPENSE AND
UNEARNED INCOME TOTALED PHP
30,000 AND PHP 10,000
RESPECTIVELY. CASH BALANCE
AMOUNTED TO PHP 100,000 WHILE
ACCOUNTS PAYABLE AND INVENTORY
TOTALED TO PHP 20,000 AND PHP
10,000 RESPECTIVELY. HOW MUCH IS
THE COMPANY’S CURRENT ASSETS?
CURRENT LIABILITIES?
COMPANY’S TOTAL LIABILITIES AND
EQUITY AMOUNTED TO PHP 285,000.
TOTAL NONCURRENT ASSETS ENDED
AT PHP 85,000. CASH TOTALED
PHP50,000. INVENTORY AMOUNTED
TO PHP100,000. ASSUMING THE
COMPANY HAD NO OTHER ASSETS,
HOW MUCH IS ACCOUNTS
RECEIVABLE?
 TOTAL ASSETS AMOUNTED TO PHP575,000.
TOTAL EQUITY AMOUNTED TO PHP 250,000.
ACCOUNTS PAYABLE AMOUNTED TO PHP
50,000 WHILE UNEARNED INCOME TOTALED
PHP 85,000. ASSUMING THERE ARE NO OTHER
CURRENT LIABILITIES, COMPUTE FOR THE
DIETER F. UCHTDORF
COMPANY’S NONCURRENT LIABILITIES.
PREPARE A STATEMENT OF
FINANCIAL POSITION 
USING THE FOLLOWING
ACCOUNTS
Creatie Talks: Advertising 05 21 2019

Cash – 5,000
Loans Payable – 77,500
Accounts Receivable – 2,600
Supplies – 2,300
Equipment – 17,000
Owner’s equity – 40,000
Accounts Payable – 22,400
Building – 113,000

pg_01 Claude Perez

Creatie Talks: Advertising 05 21 2019

YOU WERE HIRED BY MR. JUAN DELA CRUZ TO

PREPARE HIS SARI-SARI STORE’S STATEMENT OF
FINANCIAL POSITION. IN ORDER TO PREPARE THE
STATEMENT, YOU IDENTIFIED THE FOLLOWING
ASSETS AND LIABILITIES OF MR. DELA CRUZ:

pg_10 Claude Perez

Creatie Talks: Advertising 05 21 2019

A. HIS SARI-SARI STORE HAS CASH DEPOSITED IN A BANK

ACCOUNT AMOUNTING TO P50,000
B. HIS SARI-SARI STORE HAD A LOT OF UNCOLLECTED
SALES FROM CUSTOMERS AMOUNTING TO P75,000
C. THE TOTAL AMOUNT OF MERCHANDISE LEFT INSIDE THE
STORE IS P30,000
D. HE ALREADY PAID ONE YEAR’S RENT IN ADVANCE
AMOUNTING TO P12,000
E. THE VALUE OF ALL THE COMPANY’S FURNITURE
AMOUNTED TO P100,000
F. HE BOUGHT MERCHANDISE FROM HIS SUPPLIER
AMOUNTING TO P25,000 AND THE SUPPLIER AGREED THAT
PAYMENT CAN BE MADE 2 MONTHS AFTER YEAR-END
G. SSS, PHILHEALTH AND PAG-IBIG PAYABLES FOR HIS ONE
EMPLOYEE TOTALED P5,000
H. THE SARI-SARI STORE HAD OUTSTANDING LIABILITIES TO
UTILITY COMPANIES AMOUNTING TO P3,000
I. HE HAD A LOAN FROM THE BANK AMOUNTING TO
P50,000 TO BE PAID IN 3 YEARS

pg_03 Claude Perez