Question

Nyundo had the following assets and liabilities on 1st march 2006.

Capital	120,000
Machinery	80,000
Creditors	10,000
Debtors	20,000
Stock in trade	25,000
Cash at bank	5,000

On 2nd march he had the following transactions;
Purchased goods for 15,000 on credit.
Received a cheque of 10,000 from a debtor.
Sold machinery for 90,000 in cash.
Prepare his balance sheet on 2nd march, 2006.

Answer 1

Nyundo’s Balance sheet As at 2nd march, 2016
Stock in trade 40,000 Debtors          10,000 Cash at bank   15,000 Cash in hand   90,000	capital   130,000 creditors  25,000
155,000	155,000√