The Balancesheet
De Balans
The Balance sheet
The financial administration of an enterprise
1 / 39
suivant
Slide 1: Diapositive
EconomieMiddelbare schoolhavo, vwoLeerjaar 3
Cette leçon contient 39 diapositives, avec diapositives de texte.
La durée de la leçon est: 45 minÉléments de cette leçon
De Balans
The Balance sheet
The financial administration of an enterprise
Slide 1 - Diapositive
De Balans
Imagine:
A student from Havo 3 wants to start a candy store. To do this, they naturally need money to buy candy. The student has been saving for this over the past few months.
Let's say this student has saved €100, and they are going to invest their entire savings in candy.
What is the value of their candy?
Slide 2 - Diapositive
De Balans
Imagine:
A student from Havo 3 wants to start a candy store. To do this, they naturally need money to buy candy. The student has been saving for this over the past few months.
Candy value = €100
Savings value = €100
Candy = Savings
Slide 3 - Diapositive
De Balans
Slide 4 - Diapositive
De Balans
The candy is balanced with €100.
Slide 5 - Diapositive
De Balans
For businesses, it is very important to know where the money comes from & where the money is going.
This needs to be well documented (written down). This is done in a balance sheet.
Slide 6 - Diapositive
De Balans
Debet
Credit
This is what a balance sheet looks like in a company's administration.
Slide 7 - Diapositive
De Balans
Debet
Credit
Firstly, the format of the balance sheet: What do we see?
Date
Debit
Credit
On this side, it indicates where the money comes from that the company will use. Therefore, ask the question: How do we acquire the money?
On this side of the balance sheet, it shows where the money has gone. These are also referred to as the assets of the company. Ask the question: On what has the money been spent?
A balance sheet is a snapshot. At any moment of the day, you can see how the money is obtained and where it is being spent.
Slide 8 - Diapositive
De Balans
Debet
Credit
Back to our example:
A student had €100 in savings and spent it entirely on candy.
How do we reflect this in the balance sheet?
Slide 9 - Diapositive
De Balans
Debet
Credit
Owner's equity €100
Stock of candy €100
-------- +
€100
-------- +
€100
At the bottom line, you now have €100 on both sides. This allows you to verify that your balance is correct. We can now say: The balance sheet is in balance!
Slide 10 - Diapositive
De Balans
Debet
Credit
Stock of candy €100
Owner's equity €100
-------- +
€100
-------- +
€100
Continuation of the scenario:
The student overlooked how much candy they ordered. Their idea: Purchase a shelf to store the candy. However, they have no money left, what now?
Grandma comes to the rescue, as she also loves sweets, and lends her grandson €200. The shelf itself costs the student €100. From the remaining money, he deposits €50 in the bank and keeps €50 as change in his cash register.
Slide 11 - Diapositive
De Balans
Debet
Credit
Owner's equity €100
Loan grandmother €200
fixtures and fittings (shelf) €100
stock of candy €100Bank €50
Cash €50
-------- +
€300
-------- +
€300
Attention!
Balancesheet is in balance.
Slide 12 - Diapositive
De Balans
lesson 2 Position on the balance sheet + statement of changes
lesson 3 Statement of changes + debitor & creditor
lesson 4 profit and loss account + VAT
Slide 13 - Diapositive
De Balans
les 2 plek op de balans + mutatiebalans
lesson 2 Position on the balance sheet + statement of changes
Slide 14 - Diapositive
De Balans
Position on the balance sheet
Debit
Credit
Fixed assets
Current assets
Liquid assets
Owner's equity
Loan capital
example
Inventory - Building - Company vehicles
(Lasts longer than one year)
example
Stock - Debitors
(Lasts less than one year)
example
Cash- Bank
example
The remainder that is borrowed, also known as the debts
Slide 15 - Diapositive
De Balans
Statement of changes
Indicates which balance items increase or decrease.Pay attention! Only the balance items that change, and the amount by which they change, are included in this balance.
Statement of changes
Slide 16 - Diapositive
De Balans
Statement of changes
Imagine that candy is sold for €40. The cost price of this candy is €20. The payment is made in cash.Record this on the statement of changes.
Pay attention!
The stock quantity is always recorded on a balance sheet at cost price!
Statement of changes
Slide 17 - Diapositive
De Balans
Statement of changes
Imagine that candy is sold for €40. The cost price of this candy is €20. The payment is made in cash.Record this on the statement of changes.
Pay attention!
The stock quantity is always recorded on a balance sheet at cost price!
Statement of changes
stock of candy -€20
Cash +€40
--------------------------------
+€20
Owner's equity +€20
--------------------------------
+€20
Slide 18 - Diapositive
De Balans
Statement of changes
The earned €40 is taken to the bank to be deposited into the checking account.
Record this on the statement of changes.
Statement of changes
Slide 19 - Diapositive
De Balans
Bank +€40
Cash -€40
---------------- €0
---------------- €0
Statement of changes
The earned €40 is taken to the bank to be deposited into the checking account.
Record this on the statement of changes.
Statement of changes
Slide 20 - Diapositive
De Balans
lesson 3 Statement of changes + debitor & creditor
lesson 4 profit and loss account + VAT
Slide 21 - Diapositive
De Balans
Lesson 3 - statement of changes + debtors & creditors
Statement of changes
Slide 22 - Diapositive
De Balans
debtors & creditors
Statement of changes
Slide 23 - Diapositive
De Balans
debtors
creditors
The amount that your customers still owe you. These customers have purchased your products on credit!
The amount that you still have to repay to, for example, suppliers. So, you have purchased products on credit that you still need to repay!
debtors & creditors
Statement of changes
Slide 24 - Diapositive
De Balans
Debtors
Creditors
Why on the debit side?
A debtor represents money that is still owed to you, in other words, it represents value for the company. Therefore, a debtor is considered an asset, and assets are on the debit side.
Why on the credit side?
Amount that you still owe to pay, where debts always appear on the credit side.
Statement of changes
debtors & creditors
Slide 25 - Diapositive
De Balans
Debtors
+
=
A customer buys a product from you on credit. In this case, the debtors entry increases.
Slide 26 - Diapositive
De Balans
Debtors
-
=
A customer pays off their outstanding invoice to you after a specified credit term. In this case, the Debtors entry decreases.
credit term
A specific period given to repay an invoice. The length of this period is determined by the seller and can be a month, week, quarter, or year.
Slide 27 - Diapositive
De Balans
Creditors
+
=
You purchase products from a supplier on credit. You haven't paid for these products yet, so the creditors entry increases!
Slide 28 - Diapositive
De Balans
Creditors
-
=
You pay off your outstanding invoice to the supplier after a specified credit term. In this case, the creditors entry decreases.
Slide 29 - Diapositive
De Balans
lesson 4 profit and loss account + VAT
Slide 30 - Diapositive
De Balans
Profit and loss account
Profit and loss account
Kosten
opbrengsten
costs
Revenue
Slide 31 - Diapositive
De Balans
What is it?
Flow quantity
A summary of costs and revenues during a specific period. In the profit and loss account, we do not discuss balance sheet items but rather refer to flow quantities.
Kosten
opbrengsten
Profit and loss account
Profit and loss account
Revenue
Costs
Measured over a period (hour, day, week, month, etc.). The money withdrawn from your account in a month is an example of a flow quantity.
Slide 32 - Diapositive
De Balans
Profit and loss account
Profit and loss account
costs
revenues
Example:
Profit and loss account
turnover €5000
Balance (loss)........
------------------------------
x
-costs of sales €1500
-Rent €620
-Interest costs €25
-depreciation charges €200
Balance (Profit)......
------------------------------
X
Pay attention!
The profit and loss account must also be in balance. For this, we use the balance (profit/loss).
Slide 33 - Diapositive
De Balans
Profit and loss account
Profit and loss account
costs
revenues
Example:
Profit and loss account
turnover €5000
Balance (loss)
Profit made, so no loss
------------------------------
€5000
-costs of sales €1500
-Rent €620
-Interest costs €25
-depreciation charges €200
Balance (Profit)€1155
(€5000-€3845=€1155)
------------------------------
€5000
Pay attention!
The profit and loss account must also be in balance. For this, we use the balance (profit/loss).
Slide 34 - Diapositive
De Balans
Profit and loss account
Profit and loss account
costs
revenues
Example:
Profit and loss account
turnover €5000
Balance (loss)
(€5845-€5000=€845)
------------------------------
€5845
-costs of sales €3000
-Rent €620
-Interest costs €25
-depreciation charges €200
-wages €2000
Balance (Profit)
Made a loss, no profit.
------------------------------
€5845
Pay attention!
The profit and loss account must also be in balance. For this, we use the balance (profit/loss).
Slide 35 - Diapositive
De Balans
Value added tax (VAT)
What is it?
Tax that consumers have to pay on the products they purchase.
Why do we pay it?
It has become a significant source of income for the government, funding various things that benefit the Dutch citizens.
Slide 36 - Diapositive
De Balans
Value Added Tax (VAT)
Johannes buys a pair of pants for €85 excluding 21% VAT.
1)What is the cost of the pants including VAT?
2)How much VAT does Johannes pay?
Exclusive & Inclusive
Exclusive: Price without the VAT added
Inclusive: Price with the VAT added
Slide 37 - Diapositive
De Balans
Value added tax (VAT)
Johannes buys a pair of pants for €85 excluding 21% VAT.
1)What is the cost of the pants including VAT?
2)How much VAT does Johannes pay?
1) €85 + (€85x 0.21) = €102.85
or
€85/100 = €0.85
€0.85 x 121 = €102.85
2) €102.85 - €85 = €17.85
or
€85/100 = €0.85
€0.85 x 21 = €17.85
Slide 38 - Diapositive
De Balans
End of Chapter 5
