Self-test Given the list below, you are required to identify the nature of each item and where each would appear in the financial statements.

Remember that all the items must appear in one of the first four columns and also in either column 5 or 6.

Details Asset Liability Income Expense Bal sheet P&L Bank overdraft Rent paid quarterly in advance Motor vehicle Directors’ salaries Factory premises Sale of goods Purchase of stationery Bank interest received Insurance premium Tax payable in three months’ time Amount owed to stationery supplier Dividends received Stock held for resale Loan interest paid Computer equipment Shares held in another business