The statement of financial position of a business at the start of the week is as follows:
Question:
The statement of financial position of a business at the start of the week is as follows:
..............................................................................................£
ASSETS
Property .........................................................................145,000
Furniture and fittings .....................................................63,000
Inventories ......................................................................28,000
Trade receivables ...........................................................33,000
Total assets ...................................................................269,000
EQUITY AND LIABILITIES
Equity ............................................................................203,000
Short-term borrowing (bank overdraft) .....................43,000
Trade payables ...............................................................23,000
Total equity and liabilities ...........................................269,000
During the week the following transactions take place:
(a) Sold inventories for £11,000 cash; these inventories had cost £8,000.
(b) Sold inventories for £23,000 on credit; these inventories had cost £17,000.
(c) Received cash from trade receivables totalling £18,000.
(d) The owners of the business introduced £100,000 of their own money, which was placed in the business bank account.
(e) The owners brought a motor van, valued at £10,000, into the business.
(f) Bought inventories on credit for £14,000.
(g) Paid trade payables £13,000.
Required:
Show the statement of financial position after all of these transactions have been reflected.
Step by Step Answer:
Accounting and Finance An Introduction
ISBN: 978-1292088297
8th edition
Authors: Peter Atrill, Eddie McLaney