The following information has been gathered from the accounting records of Pets Parlour:
|
Assets and liabilities at 31 December Year 4 |
|
|
Cash at bank |
500 |
|
Borrowings |
6,000 |
|
Trade receivables (debtors) |
5,000 |
|
Property, plant and equipment |
29,000 |
|
Revenue and expenses for the year ended 31 December Year 4 |
|
|
Fees charged for work done |
20,000 |
|
Interest paid on borrowings |
1,000 |
|
Administration costs incurred |
1,500 |
|
Salaries paid to employees |
14,000 |
Required
Using the accounting equation, calculate:
(a) The amount of ownership interest at 31 December Year 4.
(b) The amount of net profit for the year.
(c) The amount of the ownership interest at 1 January Year 4.