2.2 John decides to start up in business on 1 April 20X1, and pays £4,000 from his private bank account into a newly opened business bank account. On 2 April 20X1 John’s father loans the firm £600 to help with the new venture, and this amount is paid immediately into the business bank account. On 4 April the firm borrows £150 from John’s friend, Peter. This amount is kept in the form of ‘ready cash’ to meet small business expenses.

Balance sheets for John’s business after the transactions on:

(a) 1 April;

(b) 2 April;

(c) 4 April.