Angela Knight commenced business on 1 January as a dealer in laptop computers of a standard make and model. She introduced £10,000 in cash as her capital. Her transactions in the first week of business have been listed below in the date sequence:

Required:

(a) Write up the Cash account recording the transactions and carry down the balance in hand at the end of the week.

(b) How could Angela satisfy herself that the Cash account has been correctly written up?

(c) Angela started with a cash balance of £10,000, and ends the week with only £9,070. Does it mean that her business is performing poorly?

(d) Explain what could possibly have happened if, on doing a cash count at close of business for the day, it is found that the actual cash in hand is only £4,070.

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Date Transaction 1.1 1.1 3.1 3.1 4.1 4.1 5.1 Paid for cabinets for storage Paid for five laptops Paid for advertising Paid as rent Paid for writing material Sold three laptops for Received as a loan from Joe £ 1,500 4,000 350 200 140 3,600 5,000 Date 5.1 6.1 6.1 6.1 7.1 7.1 7.1 Transaction Paid for five more laptops Sold three laptops for Paid for a Ford saloon car Sold a laptop computer for Sold two more laptops for Paid again for advertising Sold one more laptop for £ 4,000 3,600 7,500 1,200 2,400 240 1,200