Lisa is a wholesaler of DIY kitchen fittings. In the year ended 28 February 2021 her business transactions included the following: Purchase on credit of goods for resale at a cost of £13,100 Drawings by Lisa of £10,000 Payment of interest on a business bank overdraft of £550 Sale of a non-current asset for £7,000. The asset had cost £23,000 and accumulated depreciation at the date of sale was £18,660. For each transaction show the impact on cash, other assets and liabilities and the impact on profit.

Lisa is a wholesaler of DIY kitchen fittings. In the year ended 28 February 2021 her business transactions included the following: Purchase on credit of goods for resale at a cost of £13,100 Drawings by Lisa of £10,000 Payment of interest on a business bank overdraft of £550 Sale of a non-current asset for £7,000. The asset had cost £23,000 and accumulated depreciation at the date of sale was £18,660. For each transaction show the impact on cash, other assets and liabilities and the impact on profit.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 34P: Sally is in the business of purchasing accounts receivable last year Sally purchased an account...

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