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The Regulatory Framework of Financial Reporting

Example 1

Nadim had the following assets and liabilities on 1 January:
$
Land 200,000
Buildings 60,000
Inventories 10,000
Receivables 15,000
Bank balance 32,000
Cash in hand 5,000
———–
322,000
———–
Payables 17,000
Bank loan 240,000
———–
257,000
———–

Required:

What was the balance on Nadim's capital account at 1 January? Once
the capital account balance is determined use this balance to produce a
statement of financial position for Nadim.

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