Reading Meaning into Balance Sheets

Abstract

The following information refers to the business of Alan Andy, a taxi-cab operator, at 1 June last. At that date, he owned the freehold of a garage valued at £36 000, of which he owed £24 000 to a building society on a 15-year mortgage. He owned three cars currently valued at £10 000 each and various items of office equipment of a total value of £3600. At his garage, he had in stock £600 worth of petrol; he still owed £240 on this. His balance at the bank was £2400 and his cash-in-hand was £400.