Dan's balance sheet at 1 May is as follows:

f£ if Fixed assets 30 000 Current assets Stock 15 000 Debtors 5 000 Bank account 18 000 38 000 Current liabilities Creditors (16 000)

Net current assets (£38 000 — £16 000) 22 000 Net assets 52 000 Capital 52 000

(1) On 2 May Dan pays £1500 for an office computer to help him keep the business accounts. (2) On 3 May Dan pays a creditor £3000. Explain how his balance sheet will be affected by the two transactions and show the new balance sheet at 3 May after taking account of both transactions.

CHAPTER 6 THE BALANCE SHEET | 111