Solution 2.4 

 

Assets

Liabilities

Capital

1.      Investment

Increase

-

Increase

2.      Asset bought on credit

Increase

Increase

-

3.      Loan obtained

Increase

Increase

-

4.      Stock purchased

-

-

-

5.      Stock purchased on credit

Increase

Increase

-

6.      Goods sold on credit

-

-

*

7.      Paid creditors

Decrease

Decrease

-

8.      Debtors pay

-

-

-

In transaction 4, 6, and 8 there is movement within the category of assets but the net result is that total assets remain the same. 

* Capital would increase if a profit was made on the sale.