The statement of financial position/ The balance sheet of STAR Ltd. at the start of the week is as follows: Balance Sheet for STAR Ltd. as at ... (start of the week) Non-current Assets JD Property, plant and equipment Furniture and fittings 180,350 39,000 219,350 Current Assets Inventories 20,000 Trade receivables 25,500 45,500 Total Assets 264,850 Equity Share capital Retained profit 80,000 110,350 190,350 Current Liabilities Bank overdraft 40,000 Trade payables 34,500 74,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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During the week, the following transactions take place (in no particular order):
а)
b)
Inventories are sold for JD9,000 cash. These inventories had a historic cost of JD7,500.
Inventories are sold for JD11,000 on credit. These inventories had a historic cost of
JD8,625.
Cash of JD15,200 was received from credit customers.
Cash of JD10,000 was paid in respect of trade payables.
c)
d)
Inventories costing JD15,500 were purchased on credit.
The owner of the business introduced JD100,000 of her own cash.
e)
f)
Required:
1- Prepare a balance sheet (statement of financial position) at the end of the week once all of these
transactions have taken place.
2- For each transaction, identify the effect of the transaction on the accounting equation.
Transcribed Image Text:During the week, the following transactions take place (in no particular order): а) b) Inventories are sold for JD9,000 cash. These inventories had a historic cost of JD7,500. Inventories are sold for JD11,000 on credit. These inventories had a historic cost of JD8,625. Cash of JD15,200 was received from credit customers. Cash of JD10,000 was paid in respect of trade payables. c) d) Inventories costing JD15,500 were purchased on credit. The owner of the business introduced JD100,000 of her own cash. e) f) Required: 1- Prepare a balance sheet (statement of financial position) at the end of the week once all of these transactions have taken place. 2- For each transaction, identify the effect of the transaction on the accounting equation.
Question:
The statement of financial position/ The balance sheet of STAR Ltd. at the start of the week is as
follows:
Balance Sheet for STAR Ltd. as at ...
(start of the week)
Non-current Assets
JD
Property, plant and equipment
Furniture and fittings
180,350
39,000
219,350
Current Assets
Inventories
20,000
Trade receivables
25,500
45,500
Total Assets
264,850
Equity
Share capital
Retained profit
80,000
110,350
190,350
Current Liabilities
Bank overdraft
40,000
Trade payables
34,500
74,500
Total equity & liabilities
264,850
Transcribed Image Text:Question: The statement of financial position/ The balance sheet of STAR Ltd. at the start of the week is as follows: Balance Sheet for STAR Ltd. as at ... (start of the week) Non-current Assets JD Property, plant and equipment Furniture and fittings 180,350 39,000 219,350 Current Assets Inventories 20,000 Trade receivables 25,500 45,500 Total Assets 264,850 Equity Share capital Retained profit 80,000 110,350 190,350 Current Liabilities Bank overdraft 40,000 Trade payables 34,500 74,500 Total equity & liabilities 264,850
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