M
MORT1703
- Original Poster
- #1
hi folks I am having a bit of difficulty with the P&L and the balance sheet
Simple Scenario
I am going start with 0 cash, I buy on credit £1000 worth of stock, according to my understanding this would mean
stock would increase by 1000
debtors would increase by 1000
this in itself should balance, however when I try to add the P&L to my equity I get a negative balance of -1000 appearing from the P&L, which in turn means my balance sheet doesn't balance
any ideas what I am missing or doing wrong?
Simple Scenario
I am going start with 0 cash, I buy on credit £1000 worth of stock, according to my understanding this would mean
stock would increase by 1000
debtors would increase by 1000
this in itself should balance, however when I try to add the P&L to my equity I get a negative balance of -1000 appearing from the P&L, which in turn means my balance sheet doesn't balance
any ideas what I am missing or doing wrong?
