Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash 100 300.

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Balance sheet as at 01/04/11 $000$000$000 Fixed assets 500 Current assets: Stock 50 Debtors 150 Cash

Less current liabilities: Creditors 140 Bank overdraft Working capital or – net current asset [ ] 140 Net assets 640

Represented by: Shareholders’ fund (owners’ equity) Share capital 250 Reserves: retained profit

Long term liabilities: Debentures 150 Bank loan Capital employed 640 Net Assets = Capital employed: the two parts MUST always balance. Remember, a balance sheet shows what a company owns (assets), what it owes (liabilities) and where the company got its money (capital) from at a given date.