Accounting·Final accounts & financial statements · NSSCO 2.1b
The Statement of Financial Position (sole trader)
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Now we prepare a FULL Statement of Financial Position for a sole trader, exactly the way the examiner wants it — in vertical format, top to bottom. We'll build it section by section: non-current assets at book value, current assets in order of liquidity, owner's equity, and the two kinds of liabilities. We'll watch every year-end adjustment — depreciation, provision for doubtful debts, accruals and prepayments — flow into its proper line, then assemble one complete statement from real N$ figures and prove that it balances.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.1b):
- Explain the purpose of and define the term Statement of Financial Position
- Prepare a Statement of Financial Position of a sole trader in vertical format, including year-end adjustments and closing transfers (current assets to be listed in order of liquidity)
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Ms Pieters and Mike talk through the whole topic — with the figure and working drawn live.