2.27 The cash receipts and payments are as follows:
Cash In From Jane
12,000 50,000
From customers From landlord From scrap yard
1,000
200 ______ 63,200
Total
Cash Out For van To supplier To landlord
1,200
35,000 7,000 ______ 43,200 20,000 - ______ 20,000
Total
Net cash receipts
Opening cash
Closing cash
2.28 As all of the stock has been sold, all of the debtors collected, and the fixed asset realised, the total of the cash receipts and payments for the year is very similar to the figures in the profit and loss account, with the exception of Jane’s initial introduction of £12,000 which is not shown in the profit and loss account.
2.29 The balance sheet of the business on 31 December will show the following:
Van
-
Stocks
- - -
Debtors: trade
Debtors: rent deposit
Cash
20,000
Creditors: trade Creditors: rent
-
- ______ 20,000
Net current assets
Net assets
20,000
Jane: capital introduced
12,000 8,000 ______ 20,000
Jane retained profits (losses)
Total proprietor’s funds
9
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