Table A2.1
FixedassetsDebtorsBankCreditorsLong-termloanCapitalIncomeExpensesOpening balance+500,000+125,000−35,000+90,000+300,000+200,000Takes out loan for new building+150,000+150,000Receive from debtors−45,000+45,000Pays creditors−30,000−30,000Invoice for services performed+70,000+70,000Pay salaries−15,000+15,000Pay office expenses−5,000+5,000Depreciation−20,000+20,000630,000150,000−40,00060,000450,000200,00070,00040,000Profit transferred+30,00030,000230,000Note:+indicates the account increases.
−indicates the account decreases.The bank account is a liability (withdrawals exceed deposits)and is shown here as a minus to distinguish it froman asset.