Maria runs a small corner shop. Her statement of financial position at 31 October 2016 is shown below.

The following transactions took place in the first week of November 2016:
• Trade payables of £3,500 were paid from the bank account.
• Maria paid £10,000 of her own money into the bank account.
• Inventory of £1,200 was sold for £2,000 cash, a profit of £800 for the week.
• New inventory of £2,500 was purchased on credit from trade payables.
• Maria withdrew £300 from cash for her own personal expenses.

Required 

Show how the above transactions would increase or decrease the various balances on the statement of financial position and draw up and balance the new statement of financial position at 7 November 2016.

Transcribed Image Text:

Non-current assets Property, plant and equipment 15,000 Current assets Inventory 20,000 Other receivables 3,000 Cash and cash equivalents 500 23.500 Total assets 38,500