In each of the following situations identify whether the item should be included in the balance sheet of Transom Trading at 31 December 1991, and if so at what amount and under which heading. Transom Trading is a retailer of motor spares and accessories. In all cases reasons for your decision must be given.

(a) A freehold shop bought in August 1991 for £88 000.

(b) A mortgage of £30000 taken out to buy the shop in August 1991.

(c) Goods on the shelves at the end of the day on 31 December 1991. These goods had a resale value of £12 000 and had been purchased by Transom Trading for £8000.

(d) Delivery van, costing £6000, which Transom Trading ordered on 20 December 1991 but which was finally delivered and paid for on