Prepare the Balance Sheet for Mageta Traders as at 31st July 2016, showing the adjusted balances for each account.

Here is the Balance Sheet for Mageta Traders as at 31st July 2016: Step 1: Calculate the adjusted balances for each account. Capital: Opening Balance: Sh. 80,000 Less: Drawings (family use from bank): Sh. 3,000 Add: Introduction of family table: Sh. 5,500 Adjusted Capital:* Sh. 80,000 - 3,000 + 5,500 = 82,500 Furniture: Opening Balance: Sh. 56,000 Add: Family table converted to business use: Sh. 5,500 Adjusted Furniture:* Sh. 56,000 + 5,500 = 61,500 Debtors: Opening Balance: Sh. 25,000 Less: Cash received from debtor: Sh. 7,300 Adjusted Debtors:* Sh. 25,000 - 7,300 = 17,700 Creditors: Opening Balance: Sh. 20,000 Less: Paid a creditor in cash: Sh. 4,500 Add: Bought stock on credit: Sh. 18,600 Adjusted Creditors:* Sh. 20,000 - 4,500 + 18,600 = 34,100 Bank: Opening Balance: Sh. 11,000 Less: Took for family use (drawings): Sh. 3,000 Add: Acquired 10 Year Bank Loan: Sh. 165,000 Less: Purchased land by cheque: Sh. 82,000 Adjusted Bank:* Sh. 11,000 - 3,000 + 165,000 - 82,000 = 91,000 Cash: Opening Balance: Sh. 8,000 Less: Paid a creditor: Sh. 4,500 Add: Received from debtor: Sh. 7,300 Adjusted Cash:* Sh. 8,000 - 4,500 + 7,300 = 10,800 Stock (Inventory): Opening Balance: Sh. 0 (assumed, as no opening stock was given) Add: Bought stock on credit: Sh. 18,600 Adjusted Stock:* Sh. 0 + 18,600 = 18,600 Land: Opening Balance: Sh. 0 (assumed, as no opening land was given) Add: Purchased land: Sh. 82,000 Adjusted Land:* Sh. 0 + 82,000 = 82,000 10 Year Bank Loan: Opening Balance: Sh. 0 (assumed, as no opening loan was given) Add: Acquired loan: Sh. 165,000 Adjusted Bank Loan:* Sh. 0 + 165,000 = 165,000 Step 2: Prepare the Balance Sheet. Mageta Traders \\ Balance Sheet as at 31st July 2016 | Assets | Sh. | Sh. | | :----------------------- | --------: | --------: | | Non-Current Assets | | | | Furniture | 61,500 | | | Land | 82,000 | | | Total Non-Current Assets | | 143,500 | | | | | | Current Assets | | | | Stock | 18,600 | | | Debtors | 17,700 | | | Bank | 91,000 | | | Cash | 10,800 | | | Total Current Assets | | 138,100 | | | | | | TOTAL ASSETS | | 281,600 | | | | | | Equity and Liabilities | | | | Capital | | | | Capital | | 82,500 | | | | | | Non-Current Liabilities | | | | 10 Year Bank Loan | | 165,000 | | | | | | Current Liabilities | | | | Creditors | | 34,100 | | | | | | TOTAL EQUITY AND LIABILITIES | | 281,600 | The total assets equal the total equity and liabilities, so the balance sheet is balanced. The final answer is Balance Sheet as shown above.