Show the total of all customers’ accounts as “Accounts Receivable (See Schedule A-1).” Attach to the balance sheet a list or schedule of all customers’ accounts to support the title “Accounts Receivable (See Schedule A-1),” carried in the balance sheet. Give to it as a formal heading:

Schedule A-1

Cotten, Wooster & Company
List of Accounts Receivable
June 30, 19—

The data for the schedule come from the customers ledger list or trial balance for June 30.

Attach schedules also for the other groups of items appearing in the balance sheet, viz.: Deferred Charges to Operation under which include in addition to the other items listed, the office supplies and packing materials still on hand; Accrued Income; Accounts Payable; and Accrued Expenses.

The use of schedules relieves the balance sheet of much detail and renders it more intelligible; it also makes the detail available if desired.

Set up the net worth section as follows:

Net Worth
Represented by:
C. Allen Cotten:
Capital$ . . . . . . . .
Undrawn Profits (See Schedule A-6) . . . . . . . . $ . . . . . . . .
Scott Wooster:
Capital$ . . . . . . . .
Undrawn Profits (See Schedule A-6) . . . . . . . . . . . . . . . .
Etc.
Supporting Schedule A-6 will appear as follows:
Schedule A-6
Cotten, Wooster & Company
Undrawn Profits, June 30, 19—
DISTRIBUTIONS OF PROFITSCOTTEN
36%		WOOSTER
44%		WOOLSEY
20%
Salary for the half-year$ . . . . . . . .$ . . . . . . . .
Interest on capital . . . . . . . . . . . . . . . .$ . . . . . . . .
Share of Profit and Loss . . . . . . . . . . . . . . . . . . . . . . . .
Totals$ . . . . . . . .$ . . . . . . . .$ . . . . . . . .
Deduct:
Interest on overdrafts$ . . . . . . . .$ . . . . . . . .$ . . . . . . . .
Drawings for the half-year . . . . . . . . . . . . . . . . . . . . . . . .
Totals$ . . . . . . . .$ . . . . . . . .$ . . . . . . . .
Undrawn profits transferred to Loan Accounts $ . . . . . . . .$ . . . . . . . .$ . . . . . . . .

The data for this schedule are secured from the “Profits Distribution” section of the work sheet.