Question
The statement of financial position of a business at the start of the week is as follows: ASSETS Property 145,000 Furniture and fittings 63,000 Inventories
The statement of financial position of a business at the start of the week is as follows:
ASSETS | |
Property | 145,000 |
Furniture and fittings | 63,000 |
Inventories | 28,000 |
Trade receivables | 33,000 |
Total assets | 269,000 |
EQUITY AND LIABILITIES | |
Equity | 203,000 |
Short-term borrowing (bank overdraft) | 43,000 |
Trade payables | 23,000 |
Total equity and liabilities | 269,000 |
During the week the following transactions take place:
-
Sold inventories for 11,000 cash; these inventories had cost 8,000.
-
Sold inventories for 23,000 on credit; these inventories had cost 17,000.
-
Received cash from trade receivables totalling 18,000.
-
The owners of the business introduced 100,000 of their own money, which was placed in the business bank account.
-
The owners brought a motor van, valued at 10,000, into the business.
-
Bought inventories on credit for 14,000.
-
Paid trade payables 13,000.
Required:
Show the statement of financial position after all of these transactions have been reflected.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started