Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 August, Sarah White started a new business. During August she carried out the following transactions: 1 August: Deposited 22,000 in a newly-opened business

  1. On 1 August, Sarah White started a new business. During August she carried out the following transactions:

1 August: Deposited £22,000 in a newly-opened business bank account.

2 August: Bought software for £4,000 cash and inventories £5,000 on credit.

3 August: Borrowed £3,000 from a friend and deposited it in the bank.

4 August: Bought a scooter for £8,000 cash and withdrew £250 in cash for her own use.

5 August: Bought additional software costing £6,000. The scooter bought on 4 August was given in part exchange at a value of £4,500. The balance of the purchase price for the new software was paid in cash.

6 August: White received a grant of £2,000 and paid the amount into the business bank account. She also repaid £1,000 of the borrowings.

Required:

Draw up a capital expenditure report for the business at the end of each day.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

8th Edition

9780135114933, 136108865, 978-0136108863

More Books

Students also viewed these Accounting questions

Question

Are there diff erent kinds of memory?

Answered: 1 week ago

Question

What is a lobbyist in US? How did this term emerge?

Answered: 1 week ago

Question

LO6 distinguish between the terms income and revenue (15.6)

Answered: 1 week ago