The balance sheet of a business at the start of the week is as follows:
Question:
The balance sheet of a business at the start of the week is as follows:
£ £
Assets Claims Property 145,000 Capital 203,000 Furniture and fittings 63,000 Short-term borrowing (bank overdraft) 43,000 Inventories 28,000 Trade payables 23,000 Trade receivables 33,000 269,000 269,000 During the week the following transactions take place:
(a) Inventories sold for £11,000 cash; these inventories had cost £8,000.
(b) Sold inventories for £23,000 on credit; these inventories had cost £17,000.
(c) Received cash from trade receivables totalling £18,000.
(d) The owners of the business introduced £100,000 of their own money, which was placed in the business bank account.
(e) The owners brought a motor van, valued at £10,000, into the business.
(f ) Bought inventories on credit for £14,000.
(g) Paid trade payables £13,000.
Required:
Show the balance sheet after all of these transactions have been reflected.
2.6 2.5 2.4 69 CHAPTER 2 MEASURING AND REPORTING FINANCIAL POSITION
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