Please answer Exercise 2.3

Exercise 2.3: The following information has been supplied by Alan Withers, the owner of Appliances, as at 31 August 2005: b State the accounting equatin Ul u Cash on hand $500, Bank overdraft $3 400, Business premises $120 000, Creditor-Wholesale El 56 500, Stook of goods $29 700, Debtor-Seaview Primary School $280, Office furniture and fittinos 3 200, Vehicles-business $18 000 and private $28 000, Stock of spare parts $1 800, Mortgage loan due 2022) $80 000, Personal home loan $34 000, Debtor - Spotswood Social Club $1 200, Loan for busi- ness vehicle $4 000 (repayable over next two years). a Using the relevant information from the items listed above, prepare a classified statement of b Explain your treatment of the following items: financial position for Al's Appliances as at 31 August 2005 i Vehicle-private ii Personal home loan. Refer to the relevant SAC and/or accounting principle in your answer ly the net worth of the business to the owner. c State the accounting equation in the statement of financial position in part a, showing