Prepare a balance sheet from the following list of assets and liabilities, regarding the ownership interest as the missing item.
|
£ |
|
|
Trade payables (creditors) |
43,000 |
|
Cash at bank |
9,000 |
|
Inventories (stocks) of goods for resale |
35,000 |
|
Land and buildings |
95,000 |
|
Wages due to employees but not paid |
2,000 |
|
Vehicles |
8,000 |
|
Five year loan from a bank |
20,000 |
Explain how the balance sheet will change for each of the following transactions:
(a) The wages due to the employees are paid at £2,000.
(b) One quarter of the inventory (stock) of goods held for resale is destroyed by fire and there is no insurance to cover the loss.
(c) Goods for resale are bought on credit at a cost of £5,000.