Maria runs a small corner shop. Her statement of financial position at 31 October 2019 is shown below.

The following transactions took place in the first week of November 2019:

• Trade payables of £3,500 were paid from the bank account.

• Maria paid £10,000 of her own money into the bank account.

• Inventory of £1,200 was sold for £2,000 cash, a profit of £800 for the week.

• New inventory of £2,500 was purchased on credit from her suppliers (trade payables).

• Maria withdrew £300 from cash for her own personal expenses.

Required

Show how the above transactions would increase or decrease the various balances on the statement of financial position and draw up and balance the new statement of financial position at 7 November 2019.

Transcribed Image Text:

Non-current assets Property, plant and equipment Current assets Inventory Other receivables Cash and cash equivalents Total assets Current liabilities Bank overdraft Trade and other payables Taxation Total liabilities Net assets Capital account Balance at 31 October 2019 4 15,000 20,000 3,000 500 23,500 38,500 7,000 8,000 3,000 18,000 20,500 20,500