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

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.
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.

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Fixed assets Current assets Stock Debtors Bank account Petty cash Current liabilities Creditors Net current assets (13 100-6 400) Net assets Capital 13 500 10 300 1 200 1 000 600 13 100 (6 400) 6 700 20 200 20 200