A6.1 [S] On 1 May the Sea Traders Company purchased 200 spare parts for fishing boats, costing

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A6.1 [S] On 1 May the Sea Traders Company purchased 200 spare parts for fishing boats, costing £20 each. On 5 May, 60 of these spare parts were sold to a customer at a price of £25 each. The customer paid in cash immediately.

(a) Calculate the profit made on this transaction.

(b) Explain the impact of each transaction on the accounting equation.

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