Activity 5-3

The statement of financial position of Dornier & Co at the start of the month is
as follows: 
 
Asset 
 
Inventories29,000 
Motor vehicles24,000 
Cash 220,000 
Trade receivables26,000 
Bank6,000 
Total asset: 305,000 
 
 
Claims 
 
Equity269,000 
Bank loan25,000 
Trade payables11,000 
Total claims 305,000 
 
 

During the month the following transactions take place: 

 
(a)Received cash from trade receivables totalling 15,000. 
(b)5,000 of the bank loan was repaid. 
(c)Inventories sold for 16,000 cash; these inventories had cost 10,000. 
(d)Sold inventories for 19,000 on credit; these inventories had cost 12,000. 
(e)The owners of the business withdrew 4,000 for their personal use. 
(f)The owners brought a computer, valued at 2,000, into the business. 
(g)Fixtures and fittings were purchased costing 12,000. Half of the amount due
was paid during the month and the remainder is due to be paid next month. 
(h)Paid trade payables 9,000. 
(i)Bought inventories on credit for 18,000.  
Required: 
Show the statement of financial position at the end of the month after all of the
above transactions have been taken into account. 

 
 
Assets  £ 
Cash   
Motor vehicles    
Fixtures and fittings    
Computer    
Inventories     
Trade receivables     
Bank     
     
 
 
Claims  £ 
Equity (or capital) £000    
Bank loan £000    
Trade payables £000    
Other payables