D Moody has the following assets and liabilities as on 31 April 2002:  £ Creditors  15,800 Equipment  46,000 Motor Vehicle  25,160 Stock  24,600 Debtors   23,080 Cash at bank  29,120 Cash in hand    160 During the first week of May 2002 Moody: a.  Bought extra equipment on credit for £5,520. b.  Bought extra stock by cheque £2,280. c.  Paid creditors by cheque £3,160. d.  Debtors paid £3,360 by cheque and £240 by cash. e.  Moody put in extra £1,000 cash as capital. Required: a.  Determine the capital as at 1st May 2002. b.  Draw up a balance sheet after the above transactions have been completed.

Leave a Reply

Your email address will not be published.