I sympathise with you, not the greatest of questions. I am reluctant to just provide you with the answer, as it is better for you to work it out yourself.
Apply basic bookkeeping to this and you will have the answer. Draw up "T" accounts to post the entries. First, a van was purchased for £800. Assume this was paid from the bank account. Second, assume the shares were purchased by the director and the money paid into the bank account. Third, depreciation is £200. This is the confusing bit as you only need the balance sheet entry for the answer ( although depreciation will appear in the P&L other transactions in the P& L have created a zero profit)
So from your double entry knowledge debit balances are assets and credit balances are liabilities in the balance sheet, you should now be able to create the balance sheet.
Have a go, if you need additional help submit a post and I will clarify the entries.
Good luck
Lynne
Edited at 11 Apr 2011 05:56 PM GMT
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