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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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