5 minute balance sheet 01
Post on 07-Jul-2015
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TRANSCRIPT
“Getting started with financial accounting”(In less then 5 Minutes!)
To play these exciting playstation gameswe need a play station 1st!
Play Stations cost money
That’s how much we need
$ 150
Let’s see how much we have
Can we buy this from our pocket money?
Nothing left from my pocket money.
Wait! The piggy bank has some money!!
60 Bucks. Not Bad!
Need to ask dad (better still Mom) for a loan
50 Bucks.That’s what
Dad can spare.
Still not Enough !
60 Bucks from the Piggy Bank & 50 Bucks from dad
That’s a cool 110 bucks!.
60 Bucks 50 Bucks
+ =110
?Now What ?
Where do we get that?
40 Bucks Short
Tommy !His Piggy Bank’s Bursting
If Tommy can put in 40 bucks
He can Share the Playstation
Tommy’s IN !My New partner..I need 40 Bucks
But Tommy wants to be an equal partnerI put in 60 Bucks
And here’s his 60 bucks!
More than enough money to buy the Playstation
+
=+
170
Piggy Bank 60
From Dad 50
From Tommy 60
Let’s do some quick math
The Playstation only costs 150
Money Left Over $20
Let’s talk money language
That’s the name for
Where the money came from(also known as SOURCE)
Liability
Like any languagemoney language also has a vocabulary
Money that you put in is Owner’s Capital
*When you have a Partner (like Tommy) that’s
Shareholders Capital*
Loan from Mom or Dad known as Loans
Let’s go get that Playstation and hook it up
Where the Money went
Lets play with the gamesthat came with the Playstation
Image of 2 kids buying a playstation
Time For some more Money Language
ASSETSOR
Where the Money went(also known as Application of Funds)
Money that’s Left over is also an Asset (Known as Cash Balance)
A statement Balancing
Where the money came from
with
Where the Money went
Is called a Balance Sheet
Back to the Money Language
Our very 1st Balance Sheet
Liabilities (Where the Money came from)
*
Shareholders CapitalME $60Tommy $60
*Loans
Dad $50
Total $170
Assets (Where the Money went)
Playstation $150*Cash Balance $20(Money Left Over)
Total $170
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