Lydia is a wholesaler. She has very little knowledge about accounting, but attempted to prepare a statement of financial position. The statement she prepared contains errors.

Prepare a corrected statement of financial positon at 31 July 20–5. Use the vertical format.

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Lydia Statement of financial position at 31 July 20-5 Assets Liabilities $ Premises 82500 Trade receivables 2 140 Capital 100000 Drawings 16 120 Cash 250 Loan (repayable in 5 years) 20000 Profit for the year 14350 Cash at bank 4360 Fixtures and fittings 11980 Inventory 2480 Motor vehicle 16500 Trade payables 1980 230040 52 620