The following information has been gathered from the accounting records of Pets Parlour:
Assets and liabilities at 31 December Year 4
................................................................. £
Cash at bank .............................................. 500
Borrowings ............................................. 6,000
Trade receivables (debtors) ........................... 5,000
Property, plant and equipment ..................... 29,000
Revenue and expenses for the year ended 31 December Year 4
.................................................................... £
Fees charged for work done ........................... 20,000
Interest paid on borrowings ............................. 1,000
Administration costs incurred .......................... 1,500
Salaries paid to employees ............................ 14,000
Required
Using the accounting equation, calculate:
(a) The amount of ownership interest at 31 December Year 4.
(b) The amount of net profit for the year.
(c) The amount of the ownership interest at 1 January Year 4?