Do you need Balance sheet practice questions? Here, I will give some practice questions, and at the end you can find the answer key or directly contact us at hira@accountingdrive.com.
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Balance Sheet Definition
A balance sheet, also known as a statement of financial position, is a financial statement that presents a snapshot of a company’s financial condition at a specific point in time. It details the company’s assets, liabilities, and shareholders’ equity, offering insights into its net worth. The balance sheet adheres to the accounting equation:
Assets = Liabilities + Equity
IFRS Code for Balance Sheet
The International Financial Reporting Standards (IFRS) provide guidelines for the preparation of balance sheet. The relevant IFRS codes include:
IAS 1 (Presentation of Financial Statements): IAS 1 sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content, and accruals concepts such as going concern and consistency.
IAS 16 (Property, Plant, and Equipment): Provides guidelines on the recognition, measurement, and disclosure of PPE.
IAS 38 (Intangible Assets): Covers the accounting for intangible assets.
IAS 37 (Provisions, Contingent Liabilities, and Contingent Assets): Deals with the accounting for provisions, contingent liabilities, and contingent assets.
Balance Sheet Practice Questions
Question: 1
From the following particulars, prepare a balance sheet of ABC Company as of 31st Dec 2022
Capital $80,000
Goodwill 20,000
Prepaid Expenses 10,000
Investment 20,000
Accounts Receivable 6,400
Accounts Payable 14,200
Loan 20,000
Bank 17,200
Furniture 3,700
Building 50,000
Bank overdraft 10,000
Net profit 23,300
General reserve 1,000
Merchandise Inventor 14,800
Notes Receivable 25,000
Notes Payable 20,000
Advance from customer 5,000
Drawings 4,400
Question: 2
Here is the selected data from the trial balance of Haram Enterprises as on December 31 2022:
Cash $45,000
Accounts payable 32,000
Equipment 100,000
Drawing 12,000
Acc. dep (equipment) 27,000
Capital 450,000
Merchandise inventory 27,000
Bank overdraft 5,000
Accounts receivable 30,000
Land 300,000
Required:
With the help of this available data, prepare a balance sheet for the year ended 2022.
Question: 3
From the following trial balance of Jhon Pvt. Ltd., prepare the balance sheet for the year 2020.
Cash and Bank $200
Accounts receivable 400
Accounts Payable 300
Equipment 400
Retained Earnings 400
Long-term investments 700
Capital 1,200
Merchandise inventory 700
Short term loan 400
Furniture & Fixture 900
Question: 4
Zest Incorporation has the following balance sheet at the end of the year. You are required to prepare a Common-size Balance Sheet as of 31st Dec 2020.
Question: 5
The following balances has been extracts from the books of Heera Ltd as at 31st March 2022.
| Debit | Credit | |
| Share Capital | 500,000.00 | |
| Property | 730,000.00 | |
| Reserves | 200,000.00 | |
| Inventory | 50,000.00 | |
| Bills payable | 20,000.00 | |
| Trade payables | 40,000.00 | |
| Trade receivables | 20,000.00 | |
| Cash & Bank | 170,000.00 | |
Proposed Dividends | 12,000.00 | |
Interest accrued on debentures | 8,000.00 | |
| 5% Debentures | 200,000.00 | |
| Underwriting Commission | 10,000.00 | |
| Total | 980,000.00 | 980,000.00 |
Required:
Prepare the Balance sheet of Heera Ltd as of 31st March 2022.
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