Dual effects on balance shed equation. Fresh Foods Group, a European food retailer that operates supermarkets in

Question:

Dual effects on balance shed equation. Fresh Foods Group, a European food retailer that operates supermarkets in sewn countries, engaged in the following three transactions during 2008:
(1) Purchased and received inventory costing €678 million on account from various suppliers:
(2) Returned inventory costing €45 million because of damage that occurred during shipment:
(3) Paid the various suppliers the total amount due. Indicate the effects of each of these three transactions on the equation. Fresh Foods Group applies IFRS, and reports its results in millions of euros.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...