2.5

(a) Prepare the balance sheet of Daley from the following list of assets and liabilities at 31 December 20X1:

£

Cash 1,750 Stock 5,250 Owed by customers 3,340 Owed to suppliers 2,890 Business premises 9,000 Loan from Weakly 3,000 Remember, Assets = Capital + Liabilities.

(b) Prepare the balance sheet of Daley’s business at the end of each of the first seven days of January, taking account of the following transactions:
January 20X2 1 Purchased, on credit, a typewriter for office use, £500.
2 Received £190 from a customer.
3 Paid a supplier £670.
4 Purchased stock, on credit, £260.
5 Sold goods that had cost £350 for £530 cash.
6 Repaid Weakly £1,000 of the balance due to him (ignore interest).
7 Withdrew stock costing £100 for private use.