1
From the following statements which give the cumulative effects of individual transactions,
you are required to state as fully as possible what transaction has taken place in each case. That is,
write descriptions similar to those given in questions 4.1–4.4. There is no need to copy out the
table. The first column of data gives the opening position. Each of the other columns represents a
transaction. It is these transactions (A–I) that you are to describe.
Transaction: A B C D E F G H I
Assets £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Land and buildings 450 450 450 450 575 575 275 275 275 275
Motor vehicles 95 100 100 100 100 100 100 100 100 100
Office equipment 48 48 48 48 48 48 48 48 48 48
Stock 110 110 110 110 110 110 110 110 110 93
Debtors 188 188 188 188 188 108 108 108 108 120
Bank 27 22 22 172 47 127 427 77 77 77
Cash 15 15 11 11 11 11 11 11 3 3
933 933 929 1,079 1,079 1,079 1,079 729 721 716
Liabilities
Capital 621 621 621 621 621 621 621 621 621 616
Loan from Lee 200 200 200 350 350 350 350 – – –
Creditors 112 112 108 108 108 108 108 108 100 100
933 933 929 1,079 1,079 1,079 1,079 729 721 716
Note
: the sign
£000
means that all the figures shown underneath it are in thousands of pounds, e.g. Office
Equipment book value is £48,000. It saves constantly writing out 000 after each figure, and is done to save time
and make comparison easier.