First, explain the business transactions with the posting records (which account should have which account) and show which changes in value are mentioned in the balance sheet as a balance sheet reduction or balance sheet extension? (Do you find how many there are the balance sheet shortening and the balance sheet extension?) a) A customer pays an invoice in cash. b) A claim is offset against a liability. c) Cash withdrawal from the bank account. d) Purchase of a property against cash payment e) Supplier receives a check to settle an invoice. f) Goods are bought on credit. g) Bank transfer to a supplier. h) A liability is converted into a loan. i) A claim is converted into a loan. 1) Repayment of a loan liability by bank transfer. NOTE: Answers without a booking record will not be rated