Question # 3

The following table shows the cumulative effects of a succession of separate transactions on the assets and liabilities of a business. The first column of data gives the opening position. {Marks 5}

Transaction: A B C D E F G H I

Assets 000 000 000 000 000 000 000 000 000 000

Land and buildings 500 500 535 535 535 535 535 535 535 535

Equipment 230 230 230 230 230 230 230 200 200 200

Stocks 113 140 140 120 120 120 120 120 119 119

Trade debtors 143 143 143 173 160 158 158 158 158 158

Cash at bank 37 37 37 37 50 50 42 63 63 63

Cash on hand 9 9 9 9 9 9 9 9 9 3

1,059 1,086 1,121 1,131 1,131 1,129 1,121 1,112 1,111 1,105

Liabilities

Capital 730 730 730 740 740 738 733 724 723 717

Loan 120 120 155 155 155 155 155 155 155 155

Trade creditors 168 195 195 195 195 195 195 195 195 195

1,059 1,086 1,121 1,131 1,131 1,129 1,121 1,112 1,111 1,105

Required:

Identify clearly and as fully as you can what transaction has taken place in each case. Give 1 possible explanations for transaction A-I. Do not copy out the table but use the reference letter for each transaction.