Using the provided balance sheet format update ... - JSS3 Business studies Balance sheet Question

Explanation:

• Cash: Increased by ₦50,000 investment and ₦5,000 from accounts receivable. Total cash is now ₦65,000.
• Accounts Receivable: Received ₦5,000, so accounts receivable increased to ₦7,000.
• Inventory: No change, remains at ₦8,000.
• Accounts Payable: Increased by ₦8,000 due to inventory purchase.
• Short-term Loans: No change, as no transactions related to short-term loans occurred.
• Accrued Expenses: No change, as no transactions related to accrued expenses occurred.
• Equipment: Increased by ₦20,000 due to equipment purchase.
• Share Capital: No change, remains at ₦50,000.
• Retained Earnings: Increased by the difference between total assets and total liabilities and equity, which is ₦100,000 - ₦67,000 = ₦33,000.
• Reserves: No transactions occurred, so remains at ₦0.

 

Assets		Liabilities and Equity
Current Assets		Current Liabilities
Cash	₦65,000	Accounts Payable	₦8,000
Accounts Receivable	₦7,000	Short-term Loans	₦0
Inventory	₦8,000	Accrued Expenses	₦0
Total Current Assets	₦80,000	Total Current Liabilities	₦8,000
Non-current Assets		Non-current Liabilities
Property	₦0	Long-term Loans	₦0
Equipment	₦20,000
Total Non-current Assets	₦20,000
Total Assets	₦100,000		₦100,000
		Share Capital	₦50,000
		Retained Earnings	₦33,000
		Reserves	₦0
Total Liabilities and Equity			₦100,000