Bell started in business on 1 July 2012, with £60,000 capital in cash. During the first year he kept very few records of his transactions. The assets and liabilities of the business at 30 June 2013 were:

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Freehold premises Mortgage on the premises Inventory Accounts receivable Cash and bank balances Accounts payable 80,000 40,000 28,000 1,600 3,800 6,200 During the year, Bell withdrew 12,000 cash for his personal use but he also paid 4,000 received from the sale of his private car into the business bank account.