Question: Given below is the abridged Balance Sheet of G. Cantone:
The following transactions took place on 2nd March, 1962:
(a) Cantone receives a loan of £500, which he used to pay £200 to a creditor and £300 for the purchase of new Machinery.
(b) A debtor pays £120 on account.
(c) Cantone purchases goods for resale (stock) costing £75. This was a credit Purchase.
(d) Old machinery is sold for £100 in cash; the book value was £250.
(e) It is decided to correct the valuation of stock on 1st March, 1962, reducing it by £320.
(f) Goods were sold on credit for £190 (cost price £145). Show Cantoneas Balance Sheet as it would appear on 2nd March, 1962, after the transactions, as noted, had been recorded.