Personal Financial Statements
Personal Financial Statements
A personal balance sheet
A personal balance sheet seeks to show the financial strengths and weaknesses of an individual. It shows all the assets an individual has as well as the various liabilities owed by an individual (Redhead 2008).
My Personal balance sheet
For the year ended 31st December 2009
| Assets | Amount($) |
| Long term assets | |
| Real estate | 100,500 |
| Motor vehicle | 37500 |
| Raw land | 86200 |
| Other assets (household goods i.e. washing machine etc) | 61432 |
| Retirement funds | 101987 |
| Short term assets | |
| Cash at hand | 7500 |
| Cash in the bank (savings account) | 14550 |
| Cash in the bank (current account) | 10765 |
| Securities (bonds and stocks) | 42000 |
| Receivables (from friends) | 6000 |
| Prepayments | 1200 |
| Total assets | 460550 |
| Liabilities | |
| Long term liabilities | |
| Mortgage | 229700 |
| Bank loan | 108200 |
| Short term liabilities | |
| Bank overdraft | 44050 |
| Creditors (friends) | 63900 |
| Accruals (bills) | 1916 |
| Personal tax payable | 3700 |
| Total liabilities | 460550 |
A personal income statement
According to Rosefsky (2001) a personal income statement seeks to show an individual’s annual cash inflows and outflows. It states all the income an individual earned in a single financial year and from this deducts all the expenses the individual incurred in the year under consideration.
My Personal income statement
As at December 2009
| Income | Amount ($) | Amount ($) |
| salary | 90000 | |
| Rent from estate units | 71500 | |
| dividends | 30600 | |
| Other income | 12600 | |
| Total gross income | 204700 | |
| Expenses | ||
| Rent | 21700 | |
| Utilities | 7200 | |
| Insurance | 4200 | |
| Motor vehicle maintenance | 1200 | |
| Fuel expenses | 10700 | |
| Travel | 9000 | |
| Web hosting charges | 1300 | |
| Church donations | 2000 | |
| Savings | 17500 | |
| Food | 9700 | |
| Debt repayments (personal) | 4300 | |
| Loan repayment | 14300 | |
| Clothing | 5500 | |
| Total expenses | 108600 | |
| Net income | 96100 | |
References
Rosefsky, R.S. (2001). Personal Finance. Cengage Learning
Redhead, K. (2008). Personal Finance: A Guide to Money Management. Taylor & Francis Publishers
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