Company G has a hardware business. The balance sheet at the beginning of the financial year showed the position in Table 2.23.Show the adjustments, in the columns provided, for each of the following transactions:

(a) Goods were sold for A4,000 (cash sales A3,000, credit sales A1,000) which were included in the inventory at A2,800.

(b) An invoice for van expenses of A400 was received and paid immediately by cheque.

(c) Cheques of A8,000 were written and sent to creditors (payables). The A3,000 from cash sales was paid into the bank.

(d) The vehicle was sold at net book value for A7,000 cash, which was paid into the bank immediately.

(e) Cash A500 and cheques A2,000 were received from debtors (receivables).

(f ) Office equipment (recorded in the books at A400) was sold for A700 cash.

(g) Company G then announced that it would pay A1,000 to the owners in one month’s time, after the balance sheet for the year had been finalized.

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Table 2.23 Balance sheet for G (a) (b) (c) (d) (e) (f) (g) Shares 50,000 Profit 7,000 Payables 12,000 69,000 Premises 20,000 Equipment 9,000 Vehicle 7,000 Inventory 15,500 Receivables 2,500 Bank 14,700 Cash 300 69,000