Prepare a statement of financial position (balance sheet) from the following list of assets and liabilities, regarding the ownership interest as the missing item.
£
Trade payables (creditors) 43,000 Cash at bank 9,000 Inventories (stocks) of goods for resale 35,000 Land and buildings 95,000 Wages due to employees but not paid 2,000 Vehicles 8,000 Five-year loan from a bank 20,000 Explain how the statement of financial position (balance sheet) will change for each of the following transactions:

(a) The wages due to the employees are paid at £2,000.

(b) One-quarter of the inventory (stock) of goods held for resale is destroyed by fire and there is no insurance to cover the loss.

(c) Goods for resale are bought on credit at a cost of £5,000.