personal statement of affairs template

Statement of Affairs

Written by True Tamplin, BSc, CEPF®

Reviewed by subject matter experts.

Updated on March 28, 2023

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Table of Contents

Statement of affairs: definition.

Similar to a balance sheet , a statement of affairs is a statement of assets and liabilities that is prepared to find out capital under the single entry system .

When calculating profit or loss using this method, it is worth considering both fresh capital (or additional capital) and drawings.

Fresh Capital or Additional Capital

If fresh or additional capital is introduced during the period, it will make the closing capital incorrect. To calculate the true amount of profit or loss, deduct the fresh capital from the closing capital.

If an owner withdraws an amount for personal use during the period, the drawing will reduce the amount of closing capital. Therefore, it is necessary to add the amount drawn to the closing capital to reflect the true profit, as shown here:

Net Profit = Closing Capital + Drawings - Opening Capital - Fresh Capital

Differences Between Statement of Affairs and Balance Sheet

John & Co. keeps their books using the single-entry system. The position of the firm on 1 January 2019 was as follows:

• Stock in trade = $18,000
• Debtors = $15,000
• Furniture and fixtures = $17,500
• Cash at bank = $12,500
• Sundry creditors = $13,500
• Outstanding salaries = $2,200

The position of the firm on 31 December 2019 was as follows:

• Stock in trade = $24,000
• Debtors = $19,500
• Furniture and fixtures = $15,000
• Plant = $10,000
• Sundry creditors = $12,000
• Bank overdraft = $8,000

During the year, one of the owners withdrew $3,500 for personal expenses. In this case, charge interest on capital @ 5% p.a.

Required: Prepare Statement showing the company's profit or loss for the year ended 31 December 2019.

Statement of Affairs FAQs

What is the statement of affairs.

The statement of affairs is a financial statement that summarizes a company's assets, liabilities and owner's equity under the single entry system.

What is the difference between a statement of affairs and a balance sheet?

A statement of affairs is prepared under the single entry system, while a balance sheet is prepared under the double entry system.

How is the assets, liabilities and owner's equity are summarized under the single entry system?

A statement of affairs summarizes its assets, liabilities and owner's equity by making use of only one account.

What is a fresh capital?

Fresh capital refers to additional capital that is introduced during the period.

Why do we prepare a statement of affairs?

A statement of affairs is used to find out the capital under the single entry system. It's similar to a balance sheet and helps us determine profit or loss for a period of time.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide , a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University , where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon , Nasdaq and Forbes .

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Accounting Details

Statement of affairs, statement of affairs method:.

Learning Objectives:

Define and explain statement of affairs.

What is the purpose of preparing a statement of affairs?

Prepare the format of statement of affairs.

Definition and Explanation:

Correct final accounts of a business can be prepared in the records are maintained under the double entry system . How every where the record is incomplete, and it is not all possible to complete it by double entry, in such cases the final accounts can be only approximately prepared by means of a statement of affairs. In appearance the statement of affairs is similar to a balance sheet. For this purpose, two comparative statement of affairs are prepared – one at the commencement of the year and other at the end of the year. The excess of the assets over the liabilities as shown by the statement will represent the capital of the firm. If capital at the end shows an increase as compared to the amount of capital at the start the difference will represent profit and if the capital at the end is less than the capital at the beginning the difference will be loss. In this calculation, however, two more factors should be taken into account.

Where fresh capital has been introduced into the business during the account period, the closing capital may be taken to have been increased to that extent. To arrive at the true profit or loss, therefore, the amount of fresh capital introduced is deducted from the closing assets as determined under such circumstances.

Where drawings have been made by the proprietor during the accounting period, such drawings reduce the amount of capital at the close. In order to calculate net profit, it is necessary, therefore, that amount withdrawal should be added to the capital at the close before deducting from it the capital at the beginning.

Formula for determining the net profit is put as follows:

Rashid and Co. keeps his book on single entry system. his position on 1st January, 19991 was as follows:

Cash in hand $200, cash at bank $3000; stock in trade $20,000; sundry debtors $8,500; furniture $1,800; machinery $15,000; sundry creditors $22,000.

On 31st December, 1991 the financial position was as follows:

Cash in hand $300; cash at bank $2,000; machinery $27,000; furniture $1,500; sundry debtors $14,000 stock in trade $19,000 sundry creditors $29,000.

During the year Rashid introduced a new capital of $5,000 and withdrew for his personal expenditure $9,000.

From the above figures, prepare a statement showing the profit or loss made by him during 1991.

Rashid & Co. Statement of Affairs as at 1st January, 1991.

* 48,500 – 22,000

* 63,800 – 29,000

Statement of Profit for the year ending 31st December, 1991.

You may also be interested in other articles from “single entry system” chapter:.

• Definition and Explanation of Single Entry System
• Defects/Limitations/Disadvantages of Single Entry System
• Statement of Affairs – First Method
• Difference Between Statement of Affairs and Balance Sheet
• Conversion into Double Entry System

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Personal statement of affairs template

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Sample International Relations Personal Statement (Columbia, Cornell, Kings)

by Talha Omer, MBA, M.Eng., Harvard & Cornell Grad

In personal statement samples by field.

The following essay is written by an applicant who got accepted to top graduate programs in international relations and affairs (Masters in IR). Variations of this personal statement got accepted at Columbia’s SIPA school, Cornell’s ILR school and Kings College London. Read this essay to understand what a top personal statement in international relations and affairs should look like.

Sample Personal Statement in International Relations and Affairs

After GCE A-levels, I was so smitten with Economics that I wanted it to stay with me for life. As it happens to be, that did turn out to be true. I received a scholarship to the London School of Economics (LSE) and graduated with a bachelor’s degree in Economics. While at the LSE, I developed an interest in economic research. I interned at the Center for Economic Research in Washington, DC, every summer for four years. My work in DC was based on Evidence-Based Procurement Reforms. The project aimed to evaluate public sector institutes’ procurement process to increase efficiency in their procurement workflow. The fieldwork required me to work with government officials and help them digitize the procurement process. I realized that even though the officials wanted public sector organizations to work efficiently, such changes were not easy to bring unless better policies were designed.

During my junior year at LSE, I worked as a research assistant at the Center for Research in Economics and Business (CREB). At CREB, I worked with Professor Antony Bert on a preliminary report to evaluate the impact of microcredit on women in developing countries. The study was conducted in collaboration with a nonprofit, and it helped me see the difference my work could make in the lives of women entrepreneurs.

During my senior year at LSE, I was selected for the Global UGRAD program. My time at Utica College helped me decide where I wanted to proceed with economics. The rich discussions in my “international political economy” and “international relations” classes gave me a lot to think about. I especially remember when I led a seminar on how the West could help the East solve its economic problems. The classroom was an amalgamation of different nationalities, so the varying viewpoints were very interesting.

The thought that developing countries may be a burden for the developed world to bear saddened me. I had previously given little thought to my country’s role in the global economy. It became apparent to me that the resources, even in the wealthiest countries, are scarce, and development is a pressing issue. At the same time, interacting with people from different ethnicities opened my mind to what I needed to do for developing countries. Talking about the problems of developing countries with others motivated me to play my part in making them better, and working for their development, seemed the right place to start.

My fascination with economics grew further when I heard Professor Kaushik Basu, the Chief Economist at World Bank, talk about the challenges facing the South Asian region at the 11th South Asian Economics Students’ Meet (SAESM) in Bhutan. He stated that the South Asian region could greatly benefit from regional integration if its countries overcame problems, such as mutual mistrust, by formulating policies to help eradicate such barriers. This increased my proclivity toward development economics and sparked an interest in studying policymaking.

Recently, I got the opportunity to intern at the Planning and Development Department of India. It was a window for me to peek into the world of policymaking, which did not turn out to be as I had hoped. Millions of dollars were allocated to different projects, yet with no significant improvement in the common man’s life. I became certain that much more is needed to be done to make public policies more effective. For example, there was no proper cost-benefit analysis of projects, and there were instances where funds were tied up in projects due to bureaucratic delays.

I was thrilled to start working as a Research Assistant for a Tax project. As I had become enamored with public policy by now, I was excited to work for evidence-based policy reform. The project intends to strengthen the social relationship between the government and the taxpayers by highlighting the link between property tax revenues and public services. I have been coordinating and working closely with the Excise and Taxation Department and have also been involved in collecting and cleaning taxpayer data. While I am learning a lot here at The Indian Econometric Society (TIES), it has helped me identify the gaps in my knowledge. For example, I lack the econometric skills to analyze public programs and policies.

I hope that graduate studies will help me obtain these skills and tools. I want to pursue a Master’s in International Relations specializing in international development policy, as I want to evaluate third-world countries’ policies in an international setting. My experiences provide a great opportunity to get a graduate degree and experience the cultural exchange experience again, where I can share more experiences from my work with the new people I meet. I hope to return to India better prepared to work on policy analysis by working for developmental organizations and agencies.

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Sample Personal Statement of Purpose for the MA in International Affairs, African Applicant

My mother tongue is Kinyarwanda; I am also a near-native speaker of both French and Swahili. I knew very little English when I came to the USA in 2012, at the age of 21; but I have given it my all. It is not quite as good as my French but continues to improve rapidly. I see my future unfolding in French and Swahili as well as English, since they are the three foremost languages of commerce and interaction in Africa.

A Tutsi originally from East Congo, my first memories are of fleeing political violence in the land where I was born. In the events surrounding the genocide in Rwanda of 1994, both of my parents disappeared, one at a time, presumed deceased. The bodies of my two oldest siblings were recovered. We had sought refuge in a refugee camp fleeing violence against Tutsis in the Congo. I subsequently grew up in the refugee camp in Rwanda, reading everything that I could get my hands on. I was resettled to the USA in 2012 along with my two surviving brothers. Now 26 and a US citizen, I hope to serve my country.

I am especially excited about the prospect of studying under the direction of professors XXXX and XXXX. Dr. XXXX has written extensively about African conflicts. Since I am especially interested in “Conflict Resolution” as a response to the refugee crisis, I also see the work of Dr. XXXX on the African diaspora to be especially relevant to the research that I hope to undertake in the future. Finally, GWU is also the perfect location as a result of the wide range of internships available.

The generosity that the United States has showed to me is a powerful motivating force that drives me to excel as a student of International Affairs, preparing myself for a career with the State Department, the United States Immigration and Citizenship Services, or the United Nations.

I thank you for considering my application to the XXXX School.

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Master's International Relations Sample Statement of Purpose, Chinese Applicant with background in Finance, Humanitarian Initiative

I recognise that this age in which knowledge of other cultures, peoples and attitudes is almost instantly available, there exist unique opportunities and challenges that are entirely new in the world of diplomacy and I want to be a part of a ‘new diplomacy’ that will be required to fully exploit this situation and to identify and overcome its challenges.

Like most young people, I have always wanted to spend my life ‘making a difference’ rather than merely making a living but this ambition was rather vague and unfocussed until I took up a post at an INGO called Saferworld.  Although my role was financial, I worked alongside dedicated and highly trained people whose goal is to prevent violent conflict and build safer lives for those affected, or potentially affected, by war. I was inspired by their idealism and enthusiasm and this fired a desire in me to work to the same or similar ends.

I have recent experience working as a volunteer with a local NGO in Cambodia whose goal is to encourage development and effective local government. I assisted the NGO in the design of effective fundraising campaigns, assisting in the improvement of financial procedures and controls and improving local staff English Language skills. This first-hand experience of seeing the cheerful and determined way in which enormous challenges are faced was highly inspiring and totally confirmed me in my ambition to work in the field of international relations. I have also made several visits to my parents’ home country of Pakistan and travelled in Europe and North Africa.

A background in Finance may be atypical for applicants for this course but I believe that this specialist knowledge will enable me to ‘add value’ to it and to provide specialist input in a future career in such matters as the financial controls necessary for effective provision of aid and in countries struggling against the scourge of corruption. I would be very interested in assisting in research related to effective means of combatting corrupt practices during the course or some other finance related project.

I have happily worked, studied, served and socialized with people from many cultural and social backgrounds. I enjoy meeting new people and sharing experiences and cultural knowledge and I have a well-developed sense of humour. I have experience of effective report writing and of designing and providing interesting verbal presentations. I am an enthusiastic amateur writer and I ‘unwind’ by boxing which also keeps me fit and calls for high level tactical skills and self-discipline.

I greatly look forward to interacting with students and a faculty who share my enthusiasm and passion for this area of study and can promise to apply exceptional enthusiasm and diligence during the course.

Thank you for considering my application.

The Paradox of Humanitarian Aid

International Relations is a multi-disciplinary major that draws from politics, history, economics, law, sociology, psychology, philosophy, ethics, and geography. You'll be dealing with foreign cultures, languages, worldviews, and values. The study of foreign languages is a necessity, as is a sense of empathy, compassion, and good will.

As someone with a PHD in Religion and Social Ethics, I am especially engaged with the study of  those aspects of international relations theory which concern the extent and scope of ethical obligations between states in an era of globalization. I will help with creative ideas for your statement as we work together as a team forming and eloquently expressing the most important part, your long term goals. A world traveler who has gotten to know Asia and Europe personally throughout decades of study of politics and history, I could be a very valuable asset to your endeavors.

International Relations & Ethics

Leading schools of thought that serve to articulate an ethical posture for International Relations include Cosmopolitanism and anti-Cosmopolitanism, Realism, Liberalism, and Marxism. These are all ethical traditions that conceptually address moral issues in international relations. As a historian of the Cold War, in particular, I understand the historical background of IR, especially as concerns the Developing World.

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The Heroines of International Relations

There is little about the heroines of international relations online. Scour the Women Leaders in International Relations & Foreign Policy Facebook group, and you´ll find some mentioned, as well as a speech or two from Michelle Obama.

But as Madeleine Albright hilariously and very rightly said: “There is a special place in hell for women who do not help other women.” Yep. So we decided to help everyone get on the bandwagon and recognize some of the amazing women in this field. Let´s get started.

Martha Finnemore  

Martha Finnemore was born in 1959, and is now a constructivist  scholar of  international relations . She is also a University Professor at the  Elliott School of International Affairs  at  George Washington University .

Finnemore is best known for her books, which helped to pioneer constructivism  National Interests in International Society,   The Purpose of Intervention,  and  Rules for the World  (with Michael Barnett).

In 2009, a survey of over 2700 international relations faculty in ten countries named her one of the twenty five most influential scholars in the discipline, and one of the five scholars whose work in the last five years has been the most interesting!

An earlier survey of over 1000 American international relations faculty also ranked her similarly in both categories, and in 2011, she was elected as a member of the American Academy of Arts and Sciences.

Finnemore completed her  B.A.  at  Harvard , followed by an  M.A.  from the  University of Sydney  and a  Ph.D.  from  Stanford . Her husband, David Furth, is acting chief of the Public Safety and Homeland Security Bureau of the  Federal Communications Commission .

Nadia Murad Basee Taha  

Nadia Murad Basee Taha is a  Yazidi   human rights activist ,  Nobel Peace Prize nominee and since September 2016, the first  Goodwill Ambassador for the Dignity of Survivors of  Human Trafficking  of the  United Nations . She was kidnapped and held by the  Islamic State  in 2014.

Murad was born in the village of Kocho in  Sinjar , northern  Iraq . Her family, of the  Yazidi  people, were farmers. Murad grew up on a farm.

In 2014, when she was 21 years old, Murad was a student living in the village of Kocho in  Sinjar , northern  Iraq . Islamic State fighters rounded up the Yazidi community in the village and killed 600 people – including six of Nadia's brothers and stepbrothers – and taking the younger women into slavery.

That year Murad was one of more than 6,700 Yazidi women taken prisoner by Islamic State in Iraq, held as a slave in the city of  Mosul , beaten, burned with cigarettes, and  raped  when trying to escape.

But in November 2014, Nadia was able to escape after her captor left the house unlocked. She was taken in by a neighboring family. They were able to smuggle her out of the Islamic State controlled area, allowing her to make her way to a refugee camp in  Duhok , northern Iraq, and then to  Stuttgart ,  Germany .

On December 16, 2015, Murad briefed the  United Nations Security Council  on the issue of  human trafficking  and conflict for the first time. As part of her role as an ambassador, Murad participates in global and local advocacy initiatives to bring awareness of human trafficking and refugees.

She reaches out to refugee and survivor communities, listening to testimonies of victims of trafficking and genocide.

As of September 2016, Attorney  Amal Clooney  spoke before the  United Nations Office on Drugs and Crime (UNODC)  to discuss the decision she made in June 2016 to represent Murad as a client in legal action against ISIL commanders.

Clooney characterized the genocide, rape, and trafficking as a "bureaucracy of evil on an industrial scale". He described a slave market existing both online, on Facebook and in the Mideast that is still active today. Murad has received many serious threats to her safety as a result of her work.

Nevertheless, she has received a number of honors:

• 5 January 2016: Received the 2016  Nobel Peace Prize  nomination by the Iraqi government for activism.
• 16 September 2016: Declared First  Goodwill Ambassador  for the Dignity of Survivors of  Human Trafficking  of the  United Nations
• 10 October 2016: Received the Council of Europe   Vaclav Havel Award for Human Rights
• 27 October 2016: Awarded the Sakharov Prize for Freedom of Thought  (with  Lamiya Aji Bashar )

These very different women all have something in common: they are strategically placed within international relations and the human rights world.  And they take what they do seriously. Do you fit into that category? If so, we´d love to help you.

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