Angela Knight commenced business on 1 January as a dealer in laptop computers of a standard make
Question:
Angela Knight commenced business on 1 January as a dealer in laptop computers of a standard make and model. She introduced £10,000 in cash as her capital. Her transactions in the first week of business have been listed below in the date sequence:
Required:
(a) Write up the Cash account recording the transactions and carry down the balance in hand at the end of the week.
(b) How could Angela satisfy herself that the Cash account has been correctly written up?
(c) Angela started with a cash balance of £10,000, and ends the week with only £9,070. Does it mean that her business is performing poorly?
(d) Explain what could possibly have happened if, on doing a cash count at close of business for the day, it is found that the actual cash in hand is only £4,070.
Step by Step Answer:
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict