Balance Sheet - how to calculate...

[Nixon Williams]

Ahhhh, thats what I thought [ although the way I see it, it's debt the company owes to a creditor ].

Is that right?

I know what you mean, but a debt the company owes to someone else is a creditor!

The debt someone else OWES to the company, is a debtor.

Alan

[Bluebird]

It is a credit!

The company effectively owes the shareholders the share capital sum.

Ahhhh, thats what I thought [ although the way I see it, it's debt the company owes to a creditor ].

Is that right?

[Vallah]

Am I right in thinking on the Credit side you have:

Trade Debts [ ie agency owes me money ]
Cash in Bank
Assets values

On the debit side you have:
Creditors falling due [ normally HMRC + any Credit Card Bill ]

Where does the £100 share capital fit in? is it a debit?

Thanks

Trade debtors, cash and assets are on the debit side, creditors and share capital are on the credit side. The reason non-accountants get confused is because bank accounts show positive cash balances on your bank statement as a credit. This is because they owe money to you.

[Nixon Williams]

It is a credit!

The company effectively owes the shareholders the share capital sum.

[Bluebird]

Am I right in thinking on the Credit side you have:

Trade Debts [ ie agency owes me money ]
Cash in Bank
Assets values

On the debit side you have:
Creditors falling due [ normally HMRC + any Credit Card Bill ]

Where does the £100 share capital fit in? is it a debit?

Thanks