APRIL


1
MR R. WITHDREW ITEM
OPENING
BALANCE
SHEET TRANSACTION 1
CLOSING
BALANCE SHEET
SOME $1,00,000 FROM
HIS BANK AND
ANNOUNCED THE ASSETS (OWNED)

FORMATION OF THE Cash 0 + 100000 100000

GREEN COMPANY
WITH THIS AMOUNT
TOTAL ASSETS 100000
AS THE INITIAL
CAPITAL.
LIABILITIES

Capital 0 + 100000 100000

TOTAL LIABILITIES 100000

APRIL 2
OPENING CLOSING
BALANCE TRANSACTION BALANCE
 MR. R. TOOK ITEM SHEET 2 SHEET

$50,000 IN CASH
AS LOAN FROM ASSETS (OWNED)
BANK Cash 100000 + 50000 150000

TOTAL ASSETS 150000

LIABILITIES

Capital 100000 100000

Bank Loan + 50000 50000

TOTAL LIABILITIES 150000

 OPENING CLOSING

APRIL 3
 MR. R. BOUGHT A
ITEM
BALANCE
SHEET
TRANSACTION BALANCE
3 SHEET

SMALL SHOP- ASSETS (OWNED)

BUILDING FOR Building 0 + 25000 25000

$25,000 PAYING
Cash 150000 - 25000 125000
CASH TO THE
SELLER TOTAL ASSETS 150000

LIABILITIES
Capital 100000 100000

Bank Loan 50000 50000

TOTAL LIABILITIES 150000

APRIL 4
 MR. R. BOUGHT ITEM
OPENING
BALANCE
SHEET
TRANSACTION
4
CLOSING
BALANCE
SHEET

$10,000 WORTH
OF SUGAR – AS ASSETS
(OWNED)
USUAL PAYING IN
CASH Building 25000 25000

 ON 4TH EVENING Stocks 0 + 10000 10000

THE GOVERNENT Cash 125000 - 10000 115000

DECONTROLLED TOTAL ASSETS 150000

SUGAR LIABILITIES

Capital 100000 100000

Bank Loan 50000 50000

TOTAL
LIABILITIES 150000
 OPENING CLOSING

APRIL 5
 MR. R. PROMPTLY
ITEM
BALANCE
SHEET
TRANSACTION
5
BALANCE
SHEET

SOLD HIS ENTIRE

ASSETS (OWNED)
STOCK OF SUGAR Building 25000 25000
FOR $ 12,000 FOR Stocks 10000 - 10000 0
CASH Cash 115000 + 12000 127000

TOTAL ASSETS 152000

LIABILITIES

Capital 100000 100000

Retained Earnings 0 + 2000 2000

Bank Loan 50000 50000

TOTAL LIABILITIES 152000

THE YELLOW COMPANY
MAY 1
 MR. R. PUT IN $ ITEM
OPENING
BALANCE
SHEET
TRANSACTION
1
CLOSING
BALANCE
SHEET

50,000 CASH AS
CAPITAL AND
ASSETS (OWNED)
PERSUADED HIS
WIFE TO GIVE AN Cash 0 + 125000 125000

INTEREST FREE TOTAL ASSETS 125000

CASH LOAN OF
$75,000. LIABILITIES

Capital 0 + 50000 50000

Loan From Wife 0 + 75000 75000

TOTAL LIABILITIES 125000

 OPENING CLOSING

MAY 3
 THE YELLOW
ITEM
BALANCE
SHEET
TRANSACTION
2
BALANCE
SHEET

COMPANY
ASSETS (OWNED)
BOUGHT OFFICE
Furniture 0 + 10000 10000
FURNITURE FOR Cash 125000 - 10000 115000
$10,000 PAYING TOTAL ASSETS 125000
CASH
LIABILITIES
Capital 50000 50000
Loan From Wife 75000 75000

TOTAL LIABILITIES 125000

 OPENING CLOSING

MAY 10
 MR. R. BOUGHT
ITEM
BALANCE
SHEET
TRANSACTION
3
BALANCE
SHEET

ASSETS (OWNED)
$50,000 WORTH
Furniture 10000 10000
OF CEMENT ON
Stock 0 + 50000 50000
CREDIT
Cash 115000 115000
AGREEING TO
TOTAL ASSETS 175000
PAY THE SELLER
IN TWO WEEKS.
LIABILITIES

Capital 50000 50000

Loan From Wife 75000 75000

Creditors 0 + 50000 50000

TOTAL LIABILITIES 175000

 OPENING CLOSING

MAY 15
 CEMENT PRICES
ITEM
BALANCE
SHEET
TRANSACTION BALANCE
4 SHEET
ASSETS (OWNED)
WENT UP SHARPLY Furniture 10000 10000
AND MR. R. SOLD Stock 50000 - 50000 0

HIS ENTIRE STOCK Debtors 0 + 60000 60000

FOR $60,000. THE Cash 115000 115000

BUYER PROMISE TOTAL ASSETS 185000

TO PAY IN A WEEK. LIABILITIES

Capital 50000 50000
Retained Earnings 0 + 10000 10000
Loan From Wife 75000 75000
Creditors 50000 50000

TOTAL LIABILITIES 185000

 OPENING CLOSING

MAY 22
 THE CEMENT
ITEM
BALANCE
SHEET
TRANSACTION
5
BALANCE
SHEET
ASSETS (OWNED)
PURCHASER Furniture 10000 10000
REPAID $60,000 Stock 0 0
Debtors 60000 - 60000 0
Cash 115000 + 60000 175000
TOTAL ASSETS 185000

LIABILITIES
Capital 50000 50000
Retained Earnings 10000 10000
Loan From Wife 75000 75000
Creditors 50000 50000
TOTAL LIABILITIES 185000
MAY 23
 MR. R. PAID THE ITEM
OPENING
BALANCE
SHEET
TRANSACTION
6
CLOSING
BALANCE
SHEET

AMOUNT DUE TO ASSETS (OWNED)

Furniture 10000 10000
THE CEMENT Stock 0 0
SUPPLIER Debtors 0 0
Cash 175000 - 50000 125000
TOTAL ASSETS 135000

LIABILITIES
Capital 50000 50000
Retained Earnings 10000 10000
Loan From Wife 75000 75000
Creditors 50000 - 50000 0
TOTAL LIABILITIES 135000
MAY 31
 MR. R. REPAID
OPENING
BALANCE
CLOSING
TRANSACTION BALANCE
ITEM SHEET 7 SHEET
$25,000 TO HIS ASSETS (OWNED)

WIFE Furniture 10000 10000

Stock 0 0
Debtors 0 0
Cash 125000 - 25000 100000
TOTAL ASSETS 110000

LIABILITIES
Capital 50000 50000
Retained Earnings 10000 10000
Loan From Wife 75000 - 25000 50000
Creditors 0 0

TOTAL LIABILITIES 110000

THE BLUE COMPANY
JULY 1
 MR. R. STARTED THE
OPENING
BALANCE TRANSACTION
CLOSING
BALANCE
ITEM SHEET 1 SHEET
BLUE COMPANY
WITH $ 1,00,001 OF
ASSETS (OWNED)
HIS OWN AND
Cash 0 + 500000 500000
$99,999 PROVIDED
BY HIS FRIENDS. TOTAL ASSETS 500000

ALSO HIS BANKER

PROVIDED $3,00,000 LIABILITIES

AS LOAN Capital 0 + 200000 200000

Bank Loan 0 + 300000 300000

TOTAL LIABILITIES 500000

JULY 3 ITEM
OPENING
BALANCE
SHEET
TRANSACTION
2
CLOSING
BALANCE
SHEET

 MR. R. PURCHASED A
ASSETS (OWNED)
BUILDING FOR Building 0 + 50000 50000
$50,000, REQUIRED Equipment 0 + 200000 200000
EQUIPMENT FOR $ Furniture 0 + 20000 20000

2,00,000 AND Cash 500000 - 270000 230000

FURNITURE FOR TOTAL ASSETS 500000

$20,000, ALL PAYING

LIABILITIES
IN CASH Capital 200000 200000

Bank Loan 300000 300000

TOTAL LIABILITIES 500000

 OPENING CLOSING

JULY 7 ITEM
BALANCE
SHEET TRANSACTION 3
BALANCE
SHEET

 THE BLUE COMPANY OBTAINED ASSETS (OWNED)

A CONTRACT FOR SUPPLY OF
Building 50000 50000
1000 PAIRS OF DENIM JEANS TO
THE MINISTRY OF COMMERCE Equipment 200000 200000

AT $ 250 PER PAIR OF JEANS Furniture 200000 20000

THE BLUE COMPANY Stock- Raw Mat. 0 + 100000 100000

PURCHASED 2000 METRES OF Cash 230000 230000

CLOTH AT $50 PER METRE, TOTAL ASSETS 600000
PROMISING TO PAY BY THE
END OF THE MONTH
LIABILITIES
Capital 200000 200000
MR. R. HIRED A TEAM OF
Bank Loan 300000 300000
WORKERS WHO AGREED TO
DO THE ENTIRE JOB FOR Creditors 0 + 100000 100000
$80,000 PAYABLE AT THE END
OF THE MONTH TOTAL LIABILITIES 600000
JULY 15 OPENING
BALANCE
CLOSING
BALANCE
ITEM SHEET TRANSACTION 4 SHEET
 BY THIS TIME, THE ASSETS (OWNED)

WORKERS HAD Building 50000 50000

Equipment 200000 200000
COMPLETED ABOUT Furniture 20000 20000
HALF THE JOB. THE Stock- Raw Mat. 100000 - 100000 0

ENTIRE CLOTH HAD Stocks- WIP 0 + 140000 140000

Cash 230000 230000
BEEN CUT. TOTAL ASSETS 640000

LIABILITIES
Capital 200000 200000
Bank Loan 300000 300000
Creditors 100000 100000
Accrued Wages 0 + 40000 40000
TOTAL LIABILITIES 640000
JULY 22 OPENING
BALANCE TRANSACTION
CLOSING
BALANCE
ITEM SHEET 5 SHEET
 BY THIS TIME, THE ASSETS (OWNED)
WORKERS HAD Building 50000 50000

COMPLETED 1000 Equipment

Furniture
200000
20000
200000
20000
PAIRS OF JEANS Stock- finished goods 0 + 180000 180000
Cash 230000 230000
TOTAL ASSETS 680000

LIABILITIES
Capital 200000 200000
Bank Loan 300000 300000
Creditors 100000 100000
Accrued Wages 40000 + 40000 80000

TOTAL LIABILITIES 680000

JULY 24
 MR. R. DELIVERED ITEM
OPENING
BALANCE
SHEET TRANSACTION 6
CLOSING
BALANCE
SHEET
ASSETS (OWNED)
HIS CONSIGNMENT Building 50000 50000
TO THE MINISTRY Equipment 200000 200000
Furniture 20000 20000
Debtors- Ministry of 2500
Commerce 0 + 00 250000
Cash 230000 230000
TOTAL ASSETS 750000

LIABILITIES
Capital 200000 200000
7000
Retained Earnings 0 + 0 70000
Bank Loan 300000 300000
Creditors 100000 100000
Accrued Wages 80000 80000
TOTAL LIABILITIES 750000
JULY 31 ITEM
OPENING
BALANCE
SHEET
TRANSACTION
7
CLOSING
BALANCE
SHEET
ASSETS (OWNED)
 THE MINISTRY PAID Building 50000 50000
THE AMOUNT DUE. Equipment 200000 200000

THE BLUE COMPANY Furniture 20000 20000

Debtors- Ministry of
PAID THE SUPPLIER Commerce 250000 - 250000 0

OF CLOTH AND THE Cash 230000 + 70000 300000

TOTAL ASSETS 570000
WORKE$
LIABILITIES
Capital 200000 200000
Retained Earnings 70000 70000
Bank Loan 300000 300000
Creditors 100000 - 100000 0
Accrued Wages 80000 - 80000 0
TOTAL LIABILITIES 570000
THE BROWN COMPANY
AUGUST 1 OPENING
BALANCE
CLOSING
BALANCE
MR R. STARTED THE BROWN ITEM SHEET TRANSACTION 1 SHEET
COMPANY WITH A CAPITAL OF
$3,00,000 TO PRODUCE CHEAP
TROUSERS THE COMPANY USED
THIS CAPITAL AND $4,00,000
ASSETS (OWNED)
BANK LOAN TO BUY A BUILDING
FOR $1,00,000, EQUIPMENT FOR
$2,50,000 AND FURNITURE Cash 0 + 700000 700000
WORTH $50,000. THE COMPANY
ALSO BOUGHT $1,50,000 WORTH TOTAL ASSETS 700000
OF CLOTH, ENOUGH FOR 3000
TROUSERS

EACH TROUSER REQUIRES $50 OF LIABILITIES

CLOTH AND $30 OF LABOUR. THE
WORKERS’ WAGES FOR AUGUST Capital 0 + 300000 300000
HAD TO BE PAID ON SEPTEMBER
7. WORK STARTED ON 2000 Bank Loan 0 + 400000 400000
TROUSERS

TOTAL LIABILITIES 700000

 OPENING CLOSING

AUGUST 1 ITEM
BALANCE
SHEET
TRANSACTION
2
BALANCE
SHEET

MR R. STARTED THE BROWN

COMPANY WITH A CAPITAL OF
$3,00,000 TO PRODUCE CHEAP ASSETS (OWNED)
TROUSERS THE COMPANY
USED THIS CAPITAL AND Building 0 + 100000 100000
$4,00,000 BANK LOAN TO BUY A Equipment 0 + 250000 250000
BUILDING FOR $1,00,000,
EQUIPMENT FOR $2,50,000 AND Furniture 0 + 50000 50000
FURNITURE WORTH $50,000.
THE COMPANY ALSO BOUGHT Stock- Raw Mat 0 + 150000 150000
$1,50,000 WORTH OF CLOTH,
ENOUGH FOR 3000 TROUSERS Cash 700000 - 550000 150000

TOTAL ASSETS 700000

EACH TROUSER REQUIRES $50
OF CLOTH AND $30 OF LABOUR.
THE WORKERS’ WAGES FOR LIABILITIES
AUGUST HAD TO BE PAID ON
SEPTEMBER 7. WORK STARTED Capital 300000 300000
ON 2000 TROUSERS
Bank Loan 400000 400000

TOTAL LIABILITIES 700000

 OPENING CLOSING

AUGUST 5 ITEM

ASSETS (OWNED)
BALANCE
SHEET
TRANSACTION
3
BALANCE
SHEET

 THESE TROUSERS WERE

Building 100000 100000
HALF COMPLETE IN TERMS
Equipment 250000 250000
OF LABOUR AUGUST 10 THE
Furniture 50000 50000
BROWN COMPANY
Stock- Raw Mat 150000 - 100000 50000
COMPLETED 1500 PAIRS OF
Stock- WIP 0 + 130000 130000
TROUSERS 500 PAIRS WERE
Cash 150000 150000
LEFT HALF COMPLETE.
TOTAL ASSETS 730000

LIABILITIES

Capital 300000 300000

Bank Loan 400000 400000

Accrued Wages 0 + 30000 30000

TOTAL LIABILITIES 730000

AUGUST
 THE BROWN
30 ITEM
OPENING
BALANCE
SHEET
TRANSACTIO
N5
CLOSING
BALANCE
SHEET

ASSETS (OWNED)
COMPANY HAD Fixed Assets 400000 400000
SOLD 1000 PAIRS Stock- Raw Mat 50000 50000
OF TROUSERS AT Stock- WIP 32500 32500

$120 PER PAIR. THE Stock- Finished Goods 120000 - 80000 40000
BUYER AGREED TO Debtors 0 + 120000 120000
PAY BY SEPTEMBER Cash 150000 150000

15. NO FURTHER TOTAL ASSETS 792500

MANUFACTURING LIABILITIES

TOOK PLACE AFTER Capital 300000 300000

Retained Earnings 0 + 40000 40000

AUGUST 10.
Bank Loan 400000 400000

Accrued Wages 30000 52500

TOTAL LIABILITIES 792500

AUGUST 31 ITEM
OPENING
BALANCE
SHEET
TRANSACTION
6
CLOSING
BALANCE
SHEET
 MR. R. PAID $4,000 TO THE ASSETS (OWNED)
BANK AS INTEREST FOR
AUGUST (1 MONTH’S INTEREST Fixed Assets 400000 400000
ON $4,00,000 AT 12% PER Stock- Raw Mat 50000 50000
ANNUM)
Stock- WIP 32500 32500

DEPRECIATION OF $6,000 ON
Stock- Finished Goods 40000 40000
FIXED ASSETS WAS CHARGED
TO COMPUTE PROFITS BEFORE Debtors 120000 120000
TAX. Cash 150000 - 4000 146000

TOTAL ASSETS 788500

ON THIS PROFIT 30% INCOME
TAX HAD TO BE PAID LIABILITIES

Capital 300000 300000

5% DIVIDENT ON THE Retained Earnings 40000 - 4000 36000
CAPITAL OF $3,00,000 WAS
Bank Loan 400000 400000
GIVEN.
Accrued Wages 52500 52500

TOTAL LIABILITIES 788500

AUGUST 31
 MR. R. PAID $4,000 TO THE BANK
ITEM
OPENING
BALANCE
SHEET
TRANSACTION
7
CLOSING
BALANCE
SHEET
AS INTEREST FOR AUGUST (1
MONTH’S INTEREST ON ASSETS (OWNED)
$4,00,000 AT 12% PER ANNUM) Fixed Assets 400000 - 6000 394000

Stock- Raw Mat 50000 50000

DEPRECIATION OF $6,000 ON
FIXED ASSETS WAS CHARGED TO Stock- WIP 32500 32500
COMPUTE PROFITS BEFORE TAX. Stock- Finished Goods 40000 40000

Debtors 120000 120000

ON THIS PROFIT 30% INCOME
Cash 146000 146000
TAX HAD TO BE PAID
TOTAL ASSETS 782500
5% DIVIDENT ON THE CAPITAL LIABILITIES
OF $3,00,000 WAS GIVEN.
Capital 300000 300000

Retained Earnings 36000 - 6000 30000

Bank Loan 400000 400000

Accrued Wages 52500 52500

TOTAL LIABILITIES 782500

AUGUST 31 OPENING
BALANCE TRANSACTION
CLOSING
BALANCE
 MR. R. PAID $4,000 TO THE BANK ITEM SHEET 8 SHEET
AS INTEREST FOR AUGUST (1 ASSETS (OWNED)
MONTH’S INTEREST ON $4,00,000 Fixed Assets 394000 394000
AT 12% PER ANNUM) Stock- Raw Mat 62500 62500
Stock- WIP 50000 50000
DEPRECIATION OF $6,000 ON
FIXED ASSETS WAS CHARGED TO Stock- Finished Goods 32500 32500
COMPUTE PROFITS BEFORE TAX.
Debtors 120000 120000
Cash 146000 146000
ON THIS PROFIT 30% INCOME TAX
TOTAL ASSETS 782500
HAD TO BE PAID
LIABILITIES
Capital 300000 300000
5% DIVIDENT ON THE CAPITAL
OF $3,00,000 WAS GIVEN. Retained Earnings 30000 - 9000 21000
Bank Loan 400000 400000
Provision for Income
Tax 0 + 9000 9000
Accrued Wages 52500 52500
TOTAL LIABILITIES 782500
AUGUST 31
OPENING CLOSING
BALANCE TRANSACTION BALANCE
ITEM SHEET 9 SHEET

 MR. R. PAID $4,000 TO THE BANK ASSETS (OWNED)

AS INTEREST FOR AUGUST (1 Fixed Assets 394000 394000
MONTH’S INTEREST ON $4,00,000 Stock- Raw Mat 50000 50000
AT 12% PER ANNUM)
Stock- WIP 32500 32500
Stock- Finished
DEPRECIATION OF $6,000 ON
Goods 40000 40000
FIXED ASSETS WAS CHARGED TO
COMPUTE PROFITS BEFORE TAX. Debtors 120000 120000
Cash 146000 - 15000 131000
ON THIS PROFIT 30% INCOME TAX TOTAL ASSETS 767500
HAD TO BE PAID
LIABILITIES
Capital 300000 300000
5% DIVIDENT ON THE CAPITAL
OF $3,00,000 WAS GIVEN. Retained Earnings 21000 - 15000 6000
Bank Loan 400000 400000
Provision for
Income Tax 9000 9000
Accrued Wages 52500 52500
TOTAL LIABILITIES 767500
THE RED COMPANY
SEPTEMBER 1
OPENING
BALANCE TRANSACTION CLOSING BALANCE
ITEM SHEET 1 SHEET

 MR. R. FOUNDED THE RED

COMPANY WITH AN INTIAL ASSETS
CAPITAL OF $2,25,000 – ALL OF HIS (OWNED)
OWN

Stocks 0 + 175000 175000

ON THE SAME EVENING THE RED
COMPANY BOUGHT $1,75,000 Cash 0 + 50000 50000
WORTH OF SILVER FOR CASH
TOTAL ASSETS 225000

LIABILITIES

Capital 0 + 225000 225000

TOTAL
LIABILITIES 225000
SEPTEMBER 4
OPENING CLOSING
BALANCE BALANCE
ITEM SHEET TRANSACTION 2 SHEET

 MR. R. WAS FORCED TO SELL

HIS ENTIRE STOCK OF SILVER ASSETS (OWNED)
TO THE HONEST TRADERS FOR
$1,25,000. THE BUYER AGREED Stocks 175000 - 175000 0

TO PAY IN A WEEK’S TIME Debtors 0 + 125000 125000

Cash 50000 50000

Loss 0 + 50000 50000

TOTAL ASSETS 225000

LIABILITIES

Capital 225000

TOTAL LIABILITIES 225000

SEPTEMBER 10 ITEM
OPENING
BALANCE
SHEET
TRANSACTION
3
CLOSING
BALANCE
SHEET

 THE HONEST TRADERS PAID

$1,00,000 AND MADE IT ASSETS (OWNED)

CLEAR THIS WAS ALL THEY Stocks 0

COULD PAY BECAUSE THEY

Debtors 125000 - 125000 0
WERE BROKE
Cash 50000 + 100000 150000

Loss 50000 + 25000 75000

TOTAL ASSETS 225000

LIABILITIES

Capital 225000

TOTAL LIABILITIES 225000

THE ORANGE COMPANY
 IN EARLY OCTOBER, MR. R. AND HIS FRIENDS
FOUNDED THE ORANGE COMPANY PRIMARILY TO
MANUFACTURE HAND-TAILORED JEANS. THE
COMPANY RENTED A WORK SHEAD AS A ECONOMY
MEASURE. SUM SURPLUS FUNDS WERE INVESTED
IN GILT-EDGED SECURITIES PAYING MONTHLY
INTEREST. THE BALANCE SHEET OF THE COMPANY
AS OF 31 OCTOBER IS PROVIDED BELOW:

 BALANCE SHEET OF THE ORANGE COMPANY ON

31ST OCT.
 LIABILITIES$ASSETS$CAPITAL3,50,000EQUIPMENT3,00,00
0RETAINED EARNINGS18,000FURNITURE50,000BANK
LOAN3,80,000GROSS FIXED
ASSETS3,50,000CREDITORS80,000ACCUMULATED
DEPRECIATION6,500ACCRUED WAGES72,000NET FIXED
ASSETS3,43,500INVESTMENTS1,25,000STOCKS-RAW
MAT.50,000STOCKS-WIP56,000STOCKS-FIN
GOODS54,000DEBTORS1,00,000BANKS1,71,500TOTAL9,00,
000TOTAL9,00,000

 EACH COMPLETED PAIR OF JEANS REQUIRES $100 FOR

CLOTH, AND $80 WORTH OF LABOUR. EACH
INCOMPLETE PAIR OF JEANS (SHOWN AS WIP) HAS
AROUND $40,000 WORTH OF LABOUR EXPENDED ON IT.
EACH PAIR IS SOLD FOR $250. ON OCTOBER 31ST
ORGANE COMPANY HAD CLOTH FOR 500 PAIRS, 400
INCOMPLETE PAIRS, AND 300 COMPLETED PAI$ THE
DEBTORS REPRESENT 400 PAIRS SOLD ON CREDIT
NOVEMBER 3
OPENING CLOSING
BALANCE TRANSACTION BALANCE
ITEM SHEET 1 SHEET
ASSETS (OWNED)
 THE ORANGE COMPANY
Net Fixed Assets 343500 343500
RECEIVED THE CHEQUE FOR Investments 125000 125000
$ 60,000 FROM A DEBTOR Stock- Raw Mat 50000 50000
AND ISSUED CHEQUES FOR Stock- WIP 56000 56000
$50,000 TO CREDITORS AND
FOR $72,000 TO WORKERS Stocks- Finished Goods 54000 54000
Debtors 100000 - 60000 40000
Bank 171500 - 62000 109500
TOTAL ASSETS 778000
LIABILITIES
Capital 350000 350000
Retained Earnings 18000 18000
Bank Loan 380000 380000
Creditors 80000 - 50000 30000
Accrued Wages 72000 - 72000 0
TOTAL LIABILITIES 778000
NOVEMBER 29
OPENING CLOSING
BALANCE TRANSACTION BALANCE
ITEM SHEET 2 SHEET
ASSETS (OWNED)
 THE ORANGE COMPANY BOUGHT
ANOTHER $1,00,000 WORTH OF CLOTH. Net Fixed Assets 343500 343500
THE PARTLY COMPLETED PAIRS AS OF Investments 125000 125000
OCTOBER 31ST, WERE ALL COMPLETED.
Stock- Raw Mat 50000 + 40000 90000
ADDITIONALLY, THE COMPANY BEGAN
WORK ON ANOTHER 600 PAIRS WHICH Stock- WIP 56000 + 28000 84000
WERE HALF COMPLETE BY Stocks- Finished
Goods 54000 - 18000 36000
Debtors 40000 + 125000 165000
Bank 109500 109500
TOTAL ASSETS 953000
LIABILITIES
Capital 350000 350000
Retained Earnings 18000 + 35000 53000
Bank Loan 380000 380000
Creditors 30000 + 100000 130000
Accrued Wages 0 + 40000 40000
TOTAL LIABILITIES 953000
NOVEMBER 30- Asset Side OPENING CLOSING
 THE ORANGE COMPANY RECEIVED AN BALANCE TRANSACTION BALANCE
INTEREST WARRANT FOR $1000 ON THE ITEM SHEET 3 SHEET
INVESTMENTS MADE. THE COMPANY
PAID INTEREST OF $2500 ON THE BANK ASSETS (OWNED)
LOAN AND THE MONTHLY RENT OF
$1500.
 MR. R. STRONGLY SUSPECTED THAT A Gross Fixed Assets 350000 350000
DEBTOR FROM WHOM $2500 WAS DUE
WOULD DEFAULT Accumulated Dep 6500 + 6500 13000
 DEPRECIATION OF $6500 ON
EQUIPMENT AND FURNITURE WOULD Net Fixed Assets 343500 337000
HAVE TO BE PROVIDED FOR NOVEMBER Investments 125000 125000
 INCOME TAX AT 30% OF PROFITS WAS
Stock- Raw Mat 90000 90000
PAID
Stock- WIP 84000 84000
 A 2% DIVIDEND WAS PAID TO THE
SUPPLIERS OF THE CAPITAL Stocks- Finished
Goods 36000 36000
Debtors 165000 165000
Bank 109500 - 16900 92600
TOTAL ASSETS 929600
NOVEMBER 30- Liabilities Side LIABILITIES

 THE ORANGE COMPANY RECEIVED AN

Capital 350000 350000
INTEREST WARRANT FOR $1000 ON THE
INVESTMENTS MADE. THE COMPANY
PAID INTEREST OF $2500 ON THE BANK Retained Earnings 53000 - 25900 27100
LOAN AND THE MONTHLY RENT OF
$1500.
Bank Loan 380000 380000
 MR. R. STRONGLY SUSPECTED THAT A
DEBTOR FROM WHOM $2500 WAS DUE
WOULD DEFAULT Creditors 130000 130000
 DEPRECIATION OF $6500 ON
EQUIPMENT AND FURNITURE WOULD
HAVE TO BE PROVIDED FOR NOVEMBER
 INCOME TAX AT 30% OF PROFITS WAS
PAID Accrued Wages 40000 40000
 A 2% DIVIDEND WAS PAID TO THE
SUPPLIERS OF THE CAPITAL Provision for Bad
Debts 0 + 2500 2500

TOTAL LIABILITIES 929600