Using the total from the columns of the spreadsheet of question B6.3(a), prepare for the business in the month of April:

(a). A statement of cash flows.

(b). A statement of financial position (balance sheet).

(c). A profit and loss account.

B6.3(a)

(a) Using the list of transactions at question B6.2 above, prepare a spreadsheet similar  to that presented in Table6.8. 

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Table 6.8 Spreadsheet analysing transactions into the elements o fthe accounting equation Date Business transactions Assets Liabl ities Ownership interest Irventory Non-currert (stock) of (fixed) assets goods Cash at Trade Capitd Revenue Expenses payables contr buted/ withdrawn bank and trade (creditors) receivables (debtors) May 1 The owner provides the busine s with cash. 50,000 50,000 May 2 Thebuiness acquires buildings for cash (30,000) 30,000 May 4 Thebusiness acquires equipment for cash. (6,000) 6,000 May 6 Thebusiness purchases an inventory (stock) of goods for cash. (6,500) 6,500 May 7 The business purchases an inventory (stock) ofgoods oncredit from R. Busby and receives an invoice 5,000 5,000 May 11 Thebusiness pays R. Busby in cash for the goods it acquired on (5,000) (5,000) credit. May 14 The business pays an electricity bill in cash. (100) 100 May 17 Some of the goods purchased for resale (items costing £3,500) (3,500) 3,500 are removed from the store because sales have been agreed with customers for this date. May 17 The busness sells some of the purchased goods for cash. May 17 Thebusiness sells the remaining purchased goods on aredtto R. 4,000 4,000 3,000 3,000 Welsby and sends an invoice. May 24 R. Welsby pays in cash for the goods obtained on aredt 3,000 (3,000) May 28 The owner dravscash from the busines for personal use (1,000) (1,000) May 30 Thebusiness pays wages to an employeefor the pastmonth (2,000) 2,000 in cash. May 31 The business discovers that its equipment has fallen in value (250) 250 over the month. Totak at the end of the period 8,000 35,750 nil 49,000 7,000 5,850 6,400 50,150