2.7 The statement of financial position of a business at the start of the week is as follows: £ ASSETS Property Furniture and fittings Inventories Trade receivables Total assets EQUITY AND LIABILITIES Equity Short-term borrowing (bank overdraft) Trade payables Total equity and liabilities 145,000 63,000 28,000 33,000 269,000 203,000 43,000 23,000 269,000 During the week, the following transactions take place: (a) Sold inventories for £11,000 cash; these inventories had cost £8,000. (b) Sold inventories for £23,000 on credit; these inventories had cost £17,000. (c) Received cash from trade receivables totalling £18,000. (d) The owners of the business introduced £100,000 of their own money, which was placed in the business bank account. (e) The owners brought a motor van, valued at £10,000, into the business. (f) Bought inventories on credit for £14,000. (g) Paid trade payables £13,000. Required: Show the statement of financial position after all of these transactions have been reflected.

2.7 The statement of financial position of a business at the start of the week is as follows: £ ASSETS Property Furniture and fittings Inventories Trade receivables Total assets EQUITY AND LIABILITIES Equity Short-term borrowing (bank overdraft) Trade payables Total equity and liabilities 145,000 63,000 28,000 33,000 269,000 203,000 43,000 23,000 269,000 During the week, the following transactions take place: (a) Sold inventories for £11,000 cash; these inventories had cost £8,000. (b) Sold inventories for £23,000 on credit; these inventories had cost £17,000. (c) Received cash from trade receivables totalling £18,000. (d) The owners of the business introduced £100,000 of their own money, which was placed in the business bank account. (e) The owners brought a motor van, valued at £10,000, into the business. (f) Bought inventories on credit for £14,000. (g) Paid trade payables £13,000. Required: Show the statement of financial position after all of these transactions have been reflected.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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