|
Items |
Le |
|
Debtor |
30,000 |
|
Cash in hand |
6,750 |
|
Plant and machinery |
72,000 |
|
Motor van |
31,000 |
|
Stock of raw materials |
12,000 |
|
Loan |
50,000 |
|
Trade creditors |
43,000 |
Calculate
(a) The liquid capital for the business
(b) The fixed assets
(c) Teesan Enterprise’s capital or statement of affairs as at 31/10/2010.
(d) The working capital for Teesan Enterprises Ltd.
Explanation
(a) Liquid Capital Le
Debtors 30,000 Cash 6,750 36,750
(b) fixed Assets Le plant and machinery 72,000 motor van 31,000 103,000
(c) Teesan Enterprise's capita Item le Le cash at hand 6,750 Trade debtors 30,000 stock of raw material 12,000 plant and machinery 72,000 motor van 31,000 151,750 less liabilities Loan 50,000 Trade creditors 43,000 93,000 58,750
(d) working capital = current assets - current liabilities current assets Le stock of raw material 12,000 Trade debtors 30,000 cash in hand 6,750 48,750 Less current liabilities creditors 43,000 5,750