Fakari had the following asset at the ending of the year 2013 having started the business at the beginning of the same year.
kSH.000
Account payables 15,800
equipment 46,000
motor vehicles 25,160
Account receivable 23,080
Cash at bank 29,120
cash in hand 160,000
during that financial year the following transaction took place
1. bought extra equipment on credit for Ksh 5,520,000
2. bought extra inventory by cheque Ksh 2,280,000
3. paid creditor by cheque Ksh 3,160,000
4.receive payment from debtors Ksh 3,360,000 by cheque and Ksh 240 by cash
Questions
identify the capital as at 1st January 2014
prepare a statement of financial position after the transaction have been completed
the net profit for the period was Ksh 750,000