A new business entered into the following transactions:

(a) Cash of £300,000 was introduced as capital.

(b) Shop premises were acquired for £100,000 paid in cash.

(c) A loan of £50,000 was obtained from the bank.

(d) £75,000 was paid in cash to acquire inventory for resale.

(e) (a) Inventory costing £30,000 was sold.
(b) This inventory was sold for £75,000 cash.

(f) Employees were paid £8,000 as salary.

Required: 

Show the effect of each transaction on the Statement of financial position and prepare a Statement of income to explain the increase in the capital.