Task 2B - Classified Balance Sheets

1. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 2 – BALANCE SHEETS
© Michael Allison
Author’s express permission required for external or professional use
Page | 1
Name Student50
Task 2B Classified Balance Sheets
The owner of Ray’s Radios, a small trading business selling a range of electrical equipment, has
provided the following information as at 30 September 2015. The business applies the Conservatism
Principle to the valuation of inventory.
$ $
Cash at bank 1300 Debtors 1800
Tax bill owing 700 Fixtures and fittings 35000
Creditors 3800 Vehicles 80000
Stock 34500 Mortgage (due 2019) 80000
Loan – GUD Money 32000 Phone bill owing 200
Computer equipment 18400 Capital ?????
Additional information:
 The loan from GUD Money is repayable at a rate of $500 per month
 The phone bill owing relates to the owner’s personal mobile phone bill for last month
 Some of the firm’s stock is outdated with total stock now having an estimated current
market value of 31000
a) Define the following terms and give an example of each from the information provided.
 Current Assets
Define
Example
1 + 1 = 2 marks
 Non-Current Liabilities
Define
Example
1 + 1 = 2 marks

2. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 2 – BALANCE SHEETS
© Michael Allison
Author’s express permission required for external or professional use
Page | 2
b) With reference to a qualitative characteristic of accounting, explain why items are classified in
the Balance Sheet.
Explanation
3 marks
c) Prepare a Classified Balance Sheet for the business as at 30 September 2015.
Ray’s Radios: Balance Sheet as at 30 September 2015
$ $ $ $
18 marks
Total /25 marks