What is the amount of current assets at the end of Day 1?

(a) £5,000

(b) £8,000

(c) £15,000

(d) £18,000

The following information about Day 1 applies to question.

Day 1

T Harding and Co has commenced business as a domestic appliance repair engineering
company with a start-up cash balance of £15,000, contributed by the owner, T Harding. On Day 1, T Harding and Co purchased a van costing £5,000, for cash. On the same day, the business acquired repair parts costing £8,000, on credit.

While answering these questions, you may find it helpful to enter the transactions of Day 1 in a worksheet of the following type:

Transcribed Image Text:

Owner sets up business Purchase van Acquisition of raw materials Totals Cash Inventory (stock) of repair parts Non-current (fixed) assets Account payable (trade creditor) Capital contributed by owner