The information in Table 2.22 relates to entity F, which started business on 1 January 20X1 when €150,000 was paid in as capital.

(a) Convert this information into balance sheets at the end of the two years shown.

What is then revealed as the missing item?

(b) What conclusion can you draw about the performance of F during 20X1 and 20X2?

(c) Would your conclusion be affected if you knew that the entity had paid €15,000 to the owner during 20X1?

(d) Does the figure for delivery vans at 31 December 20X2 surprise you? If so, why?

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Table 2.22 Financial data for F 31 Dec. 20X1 31 Dec. 20X2 () () Cash at bank 19,000 36,000 Inventory of goods Shop 32,000 29,000 135,000 135,000 Wages owed to staff 800 750 Amounts owed to supplier 26,500 21,250 Amounts owed by customers 35,000 34,000 Loan to F from bank 50,000 50,000 Cash 500 2,000 Delivery vans 10,000 10,000