On 1 March, Joe Conday started a new business. During March he carried out the following transactions:
Question:
On 1 March, Joe Conday started a new business. During March he carried out the following transactions:
1 March Deposited £20,000 in a bank account.
2 March Bought fixtures and fittings for £6,000 cash, and inventories £8,000 on credit.
3 March Borrowed £5,000 from a relative and deposited it in the bank.
4 March Bought a motor car for £7,000 cash and withdrew £200 in cash for his own use.
5 March A further motor car costing £9,000 was bought. The motor car bought on 4 March was given in part exchange at a value of £6,500. The balance of purchase price for the new car was paid in cash.
6 March Conday won £2,000 in a lottery and paid the amount into the business bank account. He also repaid £1,000 of the loan.
Required:
Draw up a balance sheet for the business at the end of each day.
Step by Step Answer: