Show the balance sheet after all of these transactions have been reflected

 Accounting

The statement of the financial position of a business at the start of the week is as follows:

Assets	GHS	Claims	GHS
Property	145,000	Capital	203,000
Furniture and fittings	63,000	Bank overdraft	43,000
Inventories	28,000	Trade payables	23,000
Trade receivables	33,000
	269,000		269,000

During the week the following transactions took place:

a. Inventories sold for GHS 11,000 cash; these inventories had cost GHS 8,000.

b. Sold inventories for GHS 23,000 on credit; these inventories had cost GHS 17,000.

c. Received cash from trade receivables totaling GHS 18,000.

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

e. The owners brought a motor van at GHS 10,000 into the business.

f. Bought inventories on credit for GHS 14,000.

g. Paid trade payables GHS 13,000.

Show the balance sheet after all of these transactions have been reflected.

Balance Sheet

The balance sheet is one of the most important and fundamental financial statements that a corporation provides to its stockholders on a regular basis. It gives a summary of the firm's total assets, total liabilities, and stockholders' equity at a particular point in time. Total assets must always be equivalent to the sum of total liabilities and equity.

Solution

Journal entries of the business transactions

Transaction Number	Account	Debit £	Credit £
a	Cash	11,000
	Revenue		11,000
	Cost of Goods Sold	8,000
	Inventories		8,000
b	Trade recievables	23,000
	Revenue		23,000
	Cost of goods sold	17,000
	inventories		17,000
c	Cash	18,000
	Trade receivable		18,000
d	Cash	100,000
	capital		100,000
e	vehicle	10,000
	capital		10,000
f	Inventories	14,000
	Trade payables		14,000
g	Trade payables	13,000
	cash		13,000

the net income for the month, equals to (11,000+23,000) - (8,000+17,000) = £ 9,000

NB: £ 9,000 should also be included in the capital account

calculating the ending balances for each account is as follow:

Assets
	Beginning balance = £	+ debit £	- credit £	Ending balance £
cash	0	129,000	(13,000)	116,000
Trade receivable	33,000	23,000	(18,000)	28,000
Inventories	28,000	14,000	(25,000)	17,000
Vehicles	0	10,000	0	10,000

Claims
	Beginning balance = £	+ credit £	- debt £	Ending balance £
capital	203,000	119,000	0	322,000
Trade payables	23,000	14,000	(13,000)	24,000

Balance sheet after all transactions have been reflected:

Assets	£	Claims	£
Cash	116,000	Capital	322,000
Trade receivables	38,000	Bank overdraft	43,000
inventories	17,000	Trade payable	24,000
vehicles	10,000
Property	145,000
Furniture & fittings	63,000
Total Assets	389,000	Total claims	389,000