The statement of financial position of Dornier & Co at the start of the month is as
Question:
The statement of financial position of Dornier & Co at the start of the month is as follows:
Assets £
Inventories 29,000
Motor vehicles 24,000
Premises 220,000
Trade receivables 26,000
Bank 6,000
TOTAL
ASSETS 305,000
Claims £
Equity 269,000
Bank loan 25,000
Trade payables 11,000
TOTAL 305,000
During the month the following transactions take place:
(a) Received cash from trade receivables totalling £11,000
(b) £5,000 of the bank loan was repaid.
(c) Inventories sold for £17,000 cash; these inventories had cost £10,625
(d) Sold inventories for £20,000 on credit; these inventories had cost £12,000
(e) The owners of the business withdrew £5,000 for their personal use.
(f) The owners brought acomputer, valued at £2,500, into the business.
(g) Fixtures and fittings were purchased costing £12,000. Half of the amount due was paid during the month and the remainder is due to be paid next month.
(h) Paid trade payables £10,000.
(i) Bought inventories on credit for £19,000.
Required:
Show the statement of financial position at the end of the month after all of the above transactions have been taken into account.
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso