Lisa is a wholesaler of DIY kitchen fittings. In the year ended 28 February 2021 her business transactions included the following:Purchase on credit of goods for resale at a cost of £13,100Drawings by Lisa of £10,000Payment of interest on a business bank overdraft of £550Sale of a non-current asset for £7,000. The asset had cost £23,000 and accumulated depreciation at the date of sale was £18,660. For each transaction show the impact on cash, other assets and liabilities and the impact on profit.

The transactions in business effects assets, liabilities and equity of shareholders.

Answered: Lisa is a wholesaler of DIY kitchen…

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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Lisa is a wholesaler of DIY kitchen fittings. In the year ended 28 February 2021 her business transactions included the following:

Purchase on credit of goods for resale at a cost of £13,100
Drawings by Lisa of £10,000
Payment of interest on a business bank overdraft of £550
Sale of a non-current asset for £7,000. The asset had cost £23,000 and accumulated depreciation at the date of sale was £18,660.

For each transaction show the impact on cash, other assets and liabilities and the impact on profit.

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