Company G has a hardware business. The balance sheet at the beginning of the financial year showed the position in Table 2.23.

Show the adjustments, in the columns provided, for each of the following transactions.

(a) Goods were sold for €4,000 (cash sales €3,000, credit sales €1,000), which had originally been included in the inventory at €2,800.

(b) An invoice for van-running expenses of €400 was received and paid immediately by cheque.

(c) Cheques of €8,000 were written and sent to creditors (payables). The €3,000 received from the cash sales was paid into the bank.

(d) The vehicle was sold at net book value for €7,000 cash, which was paid into the bank immediately.

(e) Cash €500 and cheques €2,000 were received from debtors (receivables).

(f) Office equipment (recorded in the books at €400) was sold for €700 cash.
(g) Company G then announced that it would pay €1,000 to the owners in one month’s time, after the balance sheet for the year had been finalized.

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Table 2.23 Balance sheet for G (a) (b) (c) (d) (e) (f) (g) Shares 50,000 Profit 7,000 Payables 12,000 69,000 Premises 20,000 Equipment 9,000 Vehicle 7,000 Inventory 15,500 Receivables 2,500 Bank 14,700 Cash 300 69,000