Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The statement of financial position of PQR plc at the start of the week is as follows: Assets: K000 Property 145 Furniture and fittings 63

The statement of financial position of PQR plc at the start of the week is as follows:

Assets: K000

Property 145

Furniture and fittings 63

Inventories 28

Trade receivables 33

Total assets 269

Equity and liabilities

Equity 203

Bank overdraft 43

Trade payables 23

Total equity and liabilities 269

During the week the following transactions take place:

  1. Sold inventories for K11,000 cash, these inventories had cost K8,000.

  1. Sold inventories for K23,000 on credit, these inventories had cost K17,000

  1. Received cash from trade receivables totaling K18,000.

  1. The owners of the business introduced 100,000 of their own money, which was placed in the business bank account.

  1. The owners brought a motor van, valued at K10,000, into the business.

  1. Bought inventories on credit for K14,000

  1. Paid trade payables K13,000

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

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

The Church Growth Handbook Includes Complete Ministry Audit

Authors: William M. Easum

1st Edition

0687081610, 978-0687081615

More Books

Students also viewed these Accounting questions

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago