CIMA BA3 Syllabus C. PREPARATION OF ACCOUNTS FOR SINGLE ENTITIES - Extracts of a statement of financial position - Notes ^{2 / 13}

The balances on all remaining ledger accounts (including the profit or loss in the statement of profit or loss) can be listed and rearranged to form the statement of financial position.

A credit balance brought down denotes a liability.

An asset would be represented by a debit balance brought down.

The statement of financial position is not part of the double-entry system so the balances are not transferred out.