Question

Accounting Please Help

Keith opens a business, Keith S.A. and opens a bank account in the name of the business. For the first week, the following transactions take place: Day 1: Keith puts £ 1, 000 of his own money in the bank account Day 2: The commercial buys 100 shirts, each costing £ 10, Day 3: The shop sells 70 shirts for £ 30 each Day 4: The shop pays its shareholders a dividend of £ 100

Answer 1

Income Statement Keith S.A
Sales	2100
Less-Cost of Goods Sold
Opening Stock - 0 Add-Purchases - 1000 Less-Closing Stock- (300) (30 shirts* 10)	(700)
Net Income	1400

Financial Position Keith S.A
Asset
Current Assets
Cash	2000
Inventory(Closing Stock)	300
Non Current Assets	0
Total Assets	2300
Liabilities
Current Liabilities	0
Non-Current Liabilities	0
capital or Equity
Opening capital - 0 Add-Capital Introduced - 1000 Add-Net Income -1400 Less-Dividend -(100)	2300
Total Liability & Equity	2300

Statement of Cashflow(Day by day) Keith S.A
Day -1 capital Introduction	1000
Day-2 Payment towards purchase of inventory	(1000)
Day-3 Proceeds from sales	2100
Day-4 Payment of Dividend	(100)
closing cash balance	2000