Jim's Balance Sheet

Picking up the balances from the Assets, Liabilities and Capital Accounts we can draw up the Balance Sheet for Jim's Strawberry Farm.

Notice how in the Balance Sheet we still separate the Net profit from the Capital.

Although Net Profit forms part of the Owner's Equity we generally report it and any Drawings, as separate items.

The Dungeonpedia Game on the next page will test your ability to identify where particular accounts should end up, the Trading Account, Profit & Loss Account or Balance Sheet.

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