On Thursday, the fourth day of his business venture, Paul, the street trader in wrapping paper

(see earlier in the chapter, page 38), bought more inventories (stock) for £53 cash. During the day he sold inventories that had cost £33 for a total of £47.

Required:

Draw up the three financial statements for Paul’s business venture for Thursday.

The ‘total business wealth’ belongs to Paul because he is the sole owner of the business. Can you explain how the figure for total business wealth by Thursday evening has arisen? You will need to look back at the events of Monday, Tuesday and Wednesday (in this chapter on pages 38 to 41) to do this.