The following table shows the cumulative effects of a succession of separate transactions on the assets and liabilities of a business. The first column of data gives the opening position.

Required:

Identify clearly and as fully as you can what transaction has taken place in each case. Give two possible explanations for transaction I. Do not copy out the table but use the reference letter for each transaction.

Transcribed Image Text:

Transaction: Assets Land and buildings Equipment Stocks Trade debtors Prepaid expenses* Cash at bank Cash on hand Liabilities Capital Loan Trade creditors Accrued expenses* D E с £000 F £000 £000 £000 535 535 535 535 535 230 230 230 230 140 120 120 120 120 173 160 158 158 143 143 27 27 27 27 27 27 37 37 37 50 50 42 9 9 9 9 9 9 1,086 1,121 1,131 1,131 1,129 1,121 A £000 £000 500 500 230 230 113 140 143 27 37 9 1,059 730 730 120 120 168 195 41 41 1,059 1,086 B £000 730 740 155 155 195 41 1,131 195 41 1,121 740 738 155 G H £000 £000 535 535 230 200 120 158 27 63 9 1,112 733 155 155 195 195 195 41 41 38 1,131 1,129 1,121 1 £000 535 200 200 119 119 158 158 27 27 63 63 9 3 1,111 1,105 724 723 155 195 38 1,112 717 155 155 195 38 1,105 195 38 1,111