show the completed transactions on balance sheet. 2.6The balance sheet of a business at the start of the week is as follows:AssetsClaimsFreehold premisesFurniture and fittingsStock in trade145,000 Capital63,00028,000Bank overdraftTrade creditors (payables)33,000269,000Trade debtors (receivables)During the week the following transactions take place:(a) Stock sold for £11,000 cash; this stock had cost £8,000.(b) Sold stock for £23,000 on credit; this stock had cost £17,000.(c) Received cash from trade debtors totalling £18,000.(d) The owners of the business introduced £100,000 of their own money, which wthe business bank account.(e) The owners brought a motor van, valued at £10,000, into the business.(f) Bought stock in trade on credit for £14,000.(g) Paid trade creditors £13.000.Required:Show the balance sheet after all of these transactions have been reflected.

Answered: 3,000 Bank overdraft 3,000 Trade…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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show the completed transactions on balance sheet.

2.6
The balance sheet of a business at the start of the week is as follows:
Assets
Claims
Freehold premises
Furniture and fittings
Stock in trade
145,000 Capital
63,000
28,000
Bank overdraft
Trade creditors (payables)
33,000
269,000
Trade debtors (receivables)
During the week the following transactions take place:
(a) Stock sold for £11,000 cash; this stock had cost £8,000.
(b) Sold stock for £23,000 on credit; this stock had cost £17,000.
(c) Received cash from trade debtors totalling £18,000.
(d) The owners of the business introduced £100,000 of their own money, which w
the business bank account.
(e) The owners brought a motor van, valued at £10,000, into the business.
(f) Bought stock in trade on credit for £14,000.
(g) Paid trade creditors £13.000.
Required:
Show the balance sheet after all of these transactions have been reflected.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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