(a) Draw up two balance sheets for l)83 and 1984 from the following information, inserting the necessary...

(a) Draw up two balance sheets for lî)83 and 1984 from the following information, inserting the necessary 'missing' item:

(b) Comparing the two balance sheets, what conclusions, if any, can you derive about the activities of the business during 1984?

(c) Would your conclusions be affected if you knew the proprietor had withdrawn £2,000 from the business for personal use?

(d) Does the value attached to the van in 1984 surprise you? If so, why?

Transcribed Image Text:

1983 1984 Cash at bank 2,500 2,900 Stock of goods 2,900 3,200 Freehold shop 13,500 13,500 Wages owed to staff 175 180 Amounts owed to suppliers (creditors) 1,600 1,800 Amounts owed by customers (debtors) 2,125 2,650 Cash in till 100 50 Delivery van 2,000 2,000