Revised Balance Sheet - Including Depreciation - Pepe's Pizza Parlour

This is the revised version of Pepe's Balance Sheet as at 31.12.9- using the Straight-line Method of calculating Depreciation.

£ £ £
cost depreciation
Premises 100,000 ------- 100,000
Equipment 8,000 ------- 8,000
Machinery ------ ------- ------
Motor Vehicle 20,000 3,000 17.000
125,000
CURRENT ASSETS
Stock 5,500
Debtors 7,600
Bank ----
Petty Cash 200 13.300
LESS CURRENT LIABILITIES
Creditors 5,000
Bank Overdraft 2,000 (7,000) 6,300
CAPITAL EMPLOYED 131,300
less mortgage 70,000
£ 61,300
FINANCED BY:
capital 53,000
net profit 16,300 69,300
less drawings (8,000)
£ 61,300

Let's go on to look at the reducing balance method