Question
The statement of financial position of Dornier & Co at the start of the month is as follows: Assets Inventories 29,000 Motor vehicles 24,000
The statement of financial position of Dornier & Co at the start of the month is as follows:
Assets £
Inventories 29,000
Motor vehicles 24,000
Premises 220,000
Trade receivables 26,000
Bank 6,000
TOTAL
ASSETS 305,000
Claims £
Equity 269,000
Bank loan 25,000
Trade payables 11,000
TOTAL 305,000
During the month the following transactions take place:
(a) Received cash from trade receivables totalling £11,000
(b) £5,000 of the bank loan was repaid.
(c) Inventories sold for £17,000 cash; these inventories had cost £10,625
(d) Sold inventories for £20,000 on credit; these inventories had cost £12,000
(e) The owners of the business withdrew £5,000 for their personal use.
(f) The owners brought acomputer, valued at £2,500, into the business.
(g) Fixtures and fittings were purchased costing £12,000. Half of the amount due was paid during the month and the remainder is due to be paid next month.
(h) Paid trade payables £10,000.
(i) Bought inventories on credit for £19,000.
Required:
Show the statement of financial position at the end of the month after all of the above transactions have been taken into account.
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