The following information has been gathered from the accounting records of Pets Parlour:

Required
Using the accounting equation, calculate:
(a) The amount of ownership interest at 31 December Year 4.
(b) The amount of net profit for the year.
(c) The amount of the ownership interest at 1 January Year 4.

Transcribed Image Text:

Assets and liabilities at 31 December Year 4 Cash at bank Borrowings Trade receivables (debtors) Property, plant and equipment 500 6,000 5,000 29,000 Revenue and expenses for the year ended 31 December Year 4 Fees charged for work done Interest paid on borrowings Administration costs incurred Salaries paid to employees 20,000 1,000 1,500 14,000