Page 342 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 20

Example 3

Required:

Compile Nadim's statement of financial position after the transactions
from Example 2 have been accounted for.

Example 3: Solution

Statement of financial position of Nadim as at 7 January

Assets $000 $000 Capital + Liabilities $000
Non-current assets Capital 65
Land 200
Buildings 60
Office equipment 4
––––
Non-current liabilities
264 Bank loan 240
Current assets
Inventories 10 Current liabilities
Receivables 7 Payables 19
Bank balance 38
Cash in hand 5
––––
60
–––– ––––
324 324
–––– ––––

336