Top Balance Sheet Practice Questions

Do you need Balance sheet practice questions? Here, I will give some practice questions, and you can find answers by just directly messaging at hira@accountingdrive.com. 

So let’s start………..

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

Practice questions

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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 4,40

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.

Zest incorporatioon balance sheet

Question: 5

The following balances has been extracts from the books of Heera Ltd as at 31st March 2022.

 DebitCredit
Share Capital 500,000.00
Property730,000.00 
Reserves 200,000.00
Inventory50,000.00 
Bills payable 20,000.00
Trade payables 40,000.00
Trade receivables20,000.00 
Cash & Bank170,000.00 
Proposed Dividends
 12,000.00
Interest accrued on debentures
 8,000.00
5% Debentures 200,000.00
Underwriting Commission10,000.00 
Total980,000.00980,000.00

Required:

Prepare the Balance sheet of Heera Ltd as of 31st March 2022.

Answers

To get the answers to these questions just message at hira@accountingdrive.com. 

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Hiffza Aziz - Author

She is a Xero Advisor Certified and Remote Account Assistant, where she prepare monthly financial reports for the clients. She is a highly motivated and detail-oriented individual with a passion for learning.

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