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. There are no questions in the C series for this chapter.