Ally started her business Arctic Limited in April 2023. The following are the transactions during the month of April :

2023

Apr 5 Ally deposited $700 000 into the business hank account

Apr 8 Bought computers costing $65 000 by issuing a cheque of $25 000. The remaining sum is paid by borrowing a bank loan.

Apr 14 Bought motor vehicles costing $44 000 on credit from Boot Supplies

Apr 28 Settled the remaining balance to Boot Supplies for the purchase on 14 April 2023.

(a) Draw up the accounts in the books of Arctic Limited to record the transactions in April 2023 and balance off the accounts at the end of the month. (10 marks)

(b) State which accounts have a debit balance, credit balance or zero balance as at 30 April 2023.

(c) Prepare a balance sheet as at 30 April 2023.

(d) Ally is inviting Elsa to invest in Arctic Limited. Elsa requires Ally to show her a copy of the firm's latest balance sheet. Suggest why Elsa wants to look at the firm's balance sheet.