On 1 March, Joe Conday started a new business. During March he carried out the following transactions:
Question:
On 1 March, Joe Conday started a new business. During March he carried out the following transactions:
Required:
Draw up a statement of financial position for the business at the end of each day.
Transcribed Image Text:
1 March 2 March 3 March 4 March 5 March 6 March Deposited 20,000 in a bank account. Bought fixtures and fittings for 6,000 cash and inventories 8,000 on credit. Borrowed 5,000 from a relative and deposited it in the bank. Bought a motor car for 7,000 cash and withdrew 200 in cash for his own use. A further motor car costing 9,000 was bought. The motor car bought on 4 March was given in part exchange at a value of 6,500. The balance of purchase price for the new car was paid in cash. Conday won 2,000 in a lottery and paid the amount into the business bank account. He also repaid 1,000 of the borrowings.
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To prepare a statement of the financial position at the end of each day we need to keep track of Joe Condays assets liabilities and equity Below is a ...View the full answer
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Related Book For
Financial Accounting For Decision Makers
ISBN: 9780273688471
4th Edition
Authors: Eddie McLaney, Peter Atrill
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