recording depreciation on plant assets affects the balance sheet and the income statement. This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Depreciation and the balance sheet. Following along are instructions in the video below:
“This last recording this us about how depreciation affects the income statement balance sheet. You you ve got to remember to do a schedule of admin expenses. And that we show you you take admin expenses from the trial balance so remember we updated it for free seven four nine show it. But don t forget to show the depreciation you calculated as well they are admin expenses.
So what i mean by that is these figures you calculate down here. So let s make them highlight them four thousand and eight four three eight they go into there if you total that up five six one eight seven you put that in to your income statement. There five six one eight seven same with distribution costs. What does it say on the trial balance.
I think we updated it for the wages. Didn t we one three eight nine eight that s the figure that goes in your schedule. You might figure. Why are we doing it but in the examinee.
There s more than one so you need to make sure you ve got a subtotal get that figure and it goes in there okay. Everything else you to work with weighed down. And you find lots of fur retained earnings is one eight. Oh.
Six two six. Okay. Let s do the balance sheet. Okay.
So actually let me take that out because i don t wait to see that yeah okay so you put the cost in as normal. And then remember i got you to update. The provision for depreciation here and i told you that they both go in the balance sheet. So we added four grams.
Which is the four thousand depreciation for the year. So machinery the provision came eight for the vehicles. We added eight four three eight to give you 1968 eight those two figures go on the balance sheet like so sit. And then don t forget to deduct a provision from the cost you should see the value is going down.
That s it don t forget this figure here for pre payments. We re going to get it from well. If you go to trial balance. And it says here in the adjustments rent pane in advance five five three that is the prepayment.
All you have to do is put the figure in five five three. There the up go down same as normal let s look at the figures. Tray paper should be self explanatory across. I where damashii get free nine eight from again go to the adjustments can you see it says distribution.
Wages own free nine eight that s the accrual put it in tax payable. One two six five seven my last recording said you don t pay tax. Until nine months and one day after the balance sheet. Date.
That s what they owe one two six five seven. The same figure you put in the income statement. Put it in now. This is the one you need to be careful of if you look at the adjustments.
It says finance costs for the last six months out of the year right standing now member i said calculate whatever twelve months is but when it comes to doing the balance sheet you ve got a bear in mind that only six months of the total is outstanding. So what we want to do in the balance sheet. You want six months or half a year s interest. Which is eight hundred.
But so if i write here half of sixteen. Hundred be careful after up you should get twenty nine five eight eight add your total liabilities phone alone. Plus the current and finally i see if you add your equity to your liabilities. You should get two eight four eight five five five should agree to your total asset to you four eight five five five finito.
Okay. So be careful with the interest take that straight from the adjustments take that from the adjustments take that from the just months and these two really important take don t forget to add update. The provisions with the current years depreciation that you ve calculated and put them in there okay try and do that extra question or fly and then there s one more called mason and next week. We re going to look at ” .
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