A new business entered into the following transactions:

(a) Cash of £480,000 was introduced as capital.

(b) Vehicles were acquired for £160,000 paid in cash.

(c) £120,000 was paid in cash to acquire inventory for resale.

(d) (a) Inventory costing £48,000 was sold.

(b) This inventory was sold for £120,000 cash.

(e) A loan of £80,000 was obtained from the bank.

(f) Employees were paid £13,000 in cash.

Required: 

Show the effect of each transaction on the Statement of financial position and prepare a Statement of income to explain the increase in the capital.