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H Fielderville has the following assets and liabilities as on 31-(Answered)

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Question

H Fielderville has the following assets and liabilities as on 31 April 2016:

?

Creditors 15,800

Equipment 46,000

Motor Vehicle 25,160

Stock 24,600

Debtors 23,080

Cash at bank 29,120

Cash in hand 160

During the first week of May 2002 Moody:

a. Bought extra equipment on credit for ?5,520.

b. Bought extra stock by cheque ?2,280.

c. Paid creditors by cheque ?3,160.

d. Debtors paid ?3,360 by cheque and ?240 by cash.

e. Moody put in extra ?1,000 cash as capital.

Required:

a. Determine the capital as at 1st May 2016.

b. Draw up a balance sheet after the above transactions have been completed.


Solution:

 

(i) Using the accounting equation of Assets = Liabilities + Capital, then assets and liabilities

 

can be listed as follows.

 

Assets ? Liabilities ?

 

Equipment 46,000 Creditors 15,800

 

Motor...

 

Paper#9210509 | Written in 27-Jul-2016

Price : $19
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