FINANCIAL ACCOUNTING 1-BALANCE SHEET

QUESTION

H Jumps has the following assets and liabilities as on 30 November 2002:

Creditors £39,500; Equipment £115,000; Motor vehicle £62,900; Stock £61,500; Debtors £57,700; Cash at bank £72,800 and Cash in hand £400.

Compute the balance on the capital account as at 30 November 2002.

During the first week of December 2002, Jump:

a.       Bought extra equipment on credit for £13,800.

b.      Bought extra stock by cheque £5,700.

c.       Paid creditors by cheque £7,900.

d.      Received from debtors £8,400 by cheque and £600 by cash.

e.       Put in an extra £2,500 cash as capital.

You are to draw up a balance sheet as on 7 December 2002 after the above transactions have been completed.