Question

The statement of financial position of PQR plc at the start of the week is as follows:

Assets:                                                                                                            K’000

Property                                                                                                              145

Furniture and fittings                                                                                           63

Inventories                                                                                                           28

Trade receivables                                                                                                 33

Total assets                                                                                                        269

Equity and liabilities

Equity                                                                                                                  203     

Bank overdraft                                                                                                      43

Trade payables                                                                                                      23

Total equity and liabilities                                                                                   269

During the week the following transactions take place:

1. Sold inventories for K11,000 cash, these inventories had cost K8,000.

2. Sold inventories for K23,000 on credit, these inventories had cost K17,000

3. Received cash from trade receivables totaling K18,000.

4. The owners of the business introduced £100,000 of their own money, which was placed in the business bank account.

5. The owners brought a motor van, valued at K10,000, into the business.

6. Bought inventories on credit for K14,000

7. Paid trade payables K13,000

Required:

Show the statement of financial position after all of these transactions have been reflected.

                                      

Answer 1

Amounts are in "K"

The answer is inserted as picture

Income statement Cost of goods sold food sales in Cash Cost of goods sold 17,000 Sales on credit Cor Inventory ale) Profit (blf) 9,000 34.000 11,000 23,000 34,000 Precovables balance 8 Saturday Sales 26 33,000 Cash/benih 18,000 38.000 56000 Cash/book 23,000 23 oca closing balance 's Good Payables 13,000 balance Inventures 2ч ооо 37,000 Cash / Bank on 11,000 Balance Payable 100,000 14ood Closing balance 37,000 Sale Recevables Equity 18,000 13.000 closing balance 73200 129,060 129.000 Scanned with CamScanner

Inventory 28,000 Sold in Cash ) balence Pejables booo sold an credit closing belonce 42,000 8,000 17,000 1ooo 12,000 Equity 203,000 100,000 balance How capital Motor van 313200 313,000 10,000 closing balance 313,000 CScanned with CamScanner

€3,000 10,000 17,000 Statement of Financial Position Assets Amount CK) Property Ius, wo turniture & fittings Motor von Inventory Trade receivable 38,000 Cash/Bank 73000 346,000 Equity & liabilities equity 813,000 Profit 9,000 322,000 Capital rode payables 24000 346,000 CScanned with CamScanner

Note :

Assumed that the currency symbol was wrongly printed as £ instead of "K" for new capital of 100,000 brought in