Diana's balance sheet at 28 August is as follows:

£

£

Fixed assets 13 500 Current assets Stock 10 300 Debtors 1 200 Bank account 1 000 Petty cash 600 13 100 Current liabilities Creditors

(6 400)

Net current assets (£13 100 — £6 400)

6 700 Net assets 20 200 Capital 20 200 1. Diana has saved up some money for her holiday, but decides to put it into the business instead. She pays a cheque for £2000 into the business bank account on 29 August.

2. On 30 August the business receives a cheque for £600 from one of its debtors.

Explain how her balance sheet will be affected and show the new balance sheet at 30 August after taking account of both transactions.