On 1 March 19X6 Joe Conday started a new business. During March he carried out the following transactions:

Required:

(a) Draw up a balance sheet for the business at the end of each day using the horizontal format.

(b) Show how the balance sheet you have prepared as at 6 March 19X6 would be presented in the vertical format. (Present the balance sheet in good form.)

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March 1 Deposited 20,000 in a bank account. 2 3 4 5 Purchased fixtures and fittings for 6,000 cash, and stock 8,000 on credit. Borrowed 5,000 from a relative and deposited it in the bank. Purchased a motor car for 7,000 cash and withdrew 200 for own use. Another motor car costing 9,000 was purchased. The motor car purchased on March 4 was given in part exchange at a value of 6,500. The balance of purchase price for the new car was paid in cash. 6 Conday won 2,000 in a lottery and paid the amount into the business bank account. He also repaid 1,000 of the loan.