Solution 3.10
By comparing the differences in the statements of financial position from one date to the next you are required to state as fully as possible what transaction took place.
Purchased equipment for €10,000 paying by cheque.
Purchased inventory for €10,000 paying by cheque.
Four transaction have occurred between 12 and 15 January
Owner invested a further €50,000 in the business.
The business acquired additional loans of €50,000
The business acquired additional premises for €100,000
The business paid amount owing to accounts payable amounting to €3,000- the amount paid by cash.
The business sold inventory originally costing €10,000 for €20,000 with the monies received immediately
The business sold inventory on originally costing €5,000 for €10,000. The sale was on credit