Answer to Question #111136 in Accounting for Kavi

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.