Mr. Peter started business with cash $100000 and a building valued at $500000.
Purchased goods amounting to $200000 out of which goods of $180000 were purchased on credit from D. Lal.
Sold goods on credit to Ramesh $160000.
Received $156000 from Ramesh in full settlement of his account.
Paid $178000 to D.Lal in full settlement of $180000 due to him.
An old machine with the book value of $80000 is exchanged for a new machine of $240000. The old machine is valued at $50000 for exchange purposes by Machine Tools Ltd.
Purchased machinery from Pele & Sons for $50000 on credit.
Depreciation of $5000 was provided on the machinery at the end of the year.
Paid income tax $5000.
A cheque amounting to $5000 deposited in the bank was returned dishonoured.
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