What is the amount of current assets at the end of Day 1? (a) 5,000 (b) 8,000

Question:

What is the amount of current assets at the end of Day 1?

(a) £5,000

(b) £8,000

(c) £15,000

(d) £18,000


The following information about Day 1 applies to question.

Day 1

T Harding and Co has commenced business as a domestic appliance repair engineering
company with a start-up cash balance of £15,000, contributed by the owner, T Harding. On Day 1, T Harding and Co purchased a van costing £5,000, for cash. On the same day, the business acquired repair parts costing £8,000, on credit.

While answering these questions, you may find it helpful to enter the transactions of Day 1 in a worksheet of the following type:

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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