Fred owns a garage and has tried to get everything together ready for the business accounts to be drawn up. He has drawn up the list of items below. You are required to identify with reasons the balance sheet heading under which each item should be classified, and the amount at which it should be included.

(a) A motor car bought for resale at a cost of £3500: the retail price was £5000.

(b) Various loose tools for car repairs which cost £700.

(c) Two hydraulic jacks which had each cost £120.

(d) Freehold premises which had cost £40 000.

(e) The cost (£600) of digging and finishing a pit for repairs.

(f) Spare parts held as a general stock, originally costing £790.

(g) Spare parts bought from the previous owner when the garage was bought. At that time the value was agreed at £600 but it was subsequently discovered that only £200 of these spares were of any use.
(h) Breakdown truck which cost £3000 for the basic truck and £600 to have the crane fitted.
(i) A customer's car worth £1500 which was being held because the customer had not paid an outstanding bill of £300.
(j) Fred's own car which cost £4000. This is used mainly for business but Fred also uses it in the evenings and at weekends for the family.
(k) Customer goodwill which Fred reckons he has built up. He thinks that this would be worth at least £7000 if he sold the garage tomorrow.
(I) A bank loan for £1500 repayable within three months.
(m) A 20 year mortgage on the property amounting to £24000 which has not been fully repaid. The amount still outstanding is £18000.