Question

On January 1, 2009 Akil Rampaul's balance sheet was as follows:


ASSETS

Plants & Machinery 20400

Accounts Receivable 7817

Cash 1183

Furniture & Fittings 10840

Inventory 5000

Prepaid Insurance 160



LIABILITIES

Accrued Wages 940

Accounts Payable 5340

Capital 35000

Bank Overdraft 4120


During the first week, Rampaul recorded the following transactions.


1. Sold machinery with the net book value of $2000 for $1200 cash and bought new machinery for $6900 paying by cheque.


2. Collected $1102 in cash from debtors


3. The inventory was revalued at $4300


4. Insurance of $20 for one week was used up


5. Creditors were paid $3340 by cheque


6.The outstanding wages were paid in cash


7. Received a cheque for $13000 from his brother, Asa, as loan to be repaid in two years



Prepare Akil Rampaul, a revised balance sheet as at January 7, 2009 to show the effects of the first week's transactions.

Answer 1

Please refer the balance sheet. Let me know if you want excel format i can email.