• Established a business with capital of £2000

• Purchases of goods for resale on credit – £4,300

• Payments to suppliers - £3600
• Sales on credit - £5800
• Payments from customers - £3200
• Machinery purchased for cash - £1500
• Salary paid - £900
• Rent paid - £500
• Took out £1000 for personal expenses.
• Bank loan - £250
 CASH A/C
Dr. Cr.

Capital 2,000 Trade Payable’s 3,600 CAPITAL A/C

Trade Recv. 3,200 Machinery 1,500

Dr. Cr.
Salary 900

Rent Bal Cash

c/d 500 * 2,000
2,000
TRADE PAYABLE’S Dr.
A/C
Cr.
Bal c/d * 2,300 Drawings 1,000

7,500 Inventory 7,500

4,300 2,000
Cash 3,600

Bal c/d * 700

Bal b/d Bal b/d 2,300 2,000

4,300
4,300

Bal b/d 700

INVENTORY A/C
Dr. Cr.

Trade Payable 4,300 Cost Of Sales 4,300

Dr. Cr.
4,300 4,300

Inventory 4,300 Bal c/d 4,300

4,300 4,300

Bal b/d 4,300

 SALES A/C
Dr. Cr.

Bal c/d * 5,800 Trade Recv. 5,800

Dr. Cr.

Sales 5,800 Cash 3,200

5,800
Bal c/d * 2,600

Bal b/d 5,800

5,800 5,800

Bal b/d 2,600

TRADE RECIEVABLE’S A/C

MACHINARY A/C
Dr. Cr.

Cash 1,500 Bal c/d * 1,500

1,500 1,500

Bal b/d 1,500

SALARY A/C
Dr. Cr.
Salary
Dr. 900 Bal c/d * 900
Cr.

Cash 500 Bal c/d * 500

900 900

500 500
Bal b/d 900

Bal b/d 500

RENT A/C

DRAWING’s A/C
Dr. Cr.

Cash 1,000 Bal c/d * 1,000

Dr. Cr.

Loan 1,000
250 Bal c/d * 250
1,000

Bal b/d 1,000

250 250

bal b/d 250

BANK A/C
 LOAN A/C
Dr. Cr.

Bal c/d * 250 Bank 250

250 250

Bal b/d 250

Trading & Profit& Loss A/C

PARTICULAR’s Amount Amount

Sales 5,800

Less :- Cost of Sales

Inv. Purchases 4,300

- Closing Stock (0) (4,300)

Gross Profit 1,500

Less :- Expenses

Rent 500
Salary 900 (1,400)

Net Profit 100

 STATEMENT OF FINANCIAL POSITION

PARTICULARS Amount Amount

Assets :-

Non – Current Asset’s

Machinery 1,500

Current Assets

Trade Recv. 2,600

4,100
Add :- Bank
+250

4,350

Liabilities :-

Capital 2,000

Add :- Net Profit 100

Less :- Drawing’s (1000)

1,100

Current Liabilities :-

Cash 2,300

Trade Payable’s 700

Loan 250
3,250

4,350