Kazam Services begins the month with capital of £200,000 and the following assets and liabilities:

The following transactions took place in the accounting records of the business during the last month: 

Take out long-term loan for new building 150,000 

Receive 45,000 from debtors 

Pay 30,000 to creditors 

Invoice customers for 70,000 for services carried out 

Pay salaries 15,000 

Pay various office expenses 5,000 

In addition, depreciation of 20,000 is to be provided for the period. 

Produce a schedule of transactions under appropriate headings for each account.  

Total each account and produce an Income Statement and Balance Sheet.

Transcribed Image Text:

Assets Fixed assets 500,000 Debtors 125,000 Liabilities Bank overdraft 35,000 Creditors 90,000 Long-term loan 300,000