Fergus introduces additional capital of £10 000 in cash.

Purchase on credit of goods for resale for £8000.

Payment received from debtor for £1800.

Purchase of a new machine for use in the business. The machine costs £12 000 and will be depreciated over ten years on the straight-line basis, assuming no residual value, with a full year’s depreciation in the year of acquisition.

Sales returns of £1000 in exchange for a cash refund.

Drawings of £1300.

For each transaction show the impact on cash, other assets and liabilities, and the impact on profits.