The question is asking for a clear and concise explanation of the given balance sheet. Here is a breakdown of the items mentioned: Capital,Purchase Equipment,Motor van,Stock 1/1/2013,Rent received,Creditors,Debtors,Sales,Furniture and fittings,Cash,Discount received,Discount allowed,Provision for doubtful debt,Bad debt,Salaries, Drawings,General expenses,Lighting,Insurance,Loan at 6/2% interest per annum.
1. Capital: This represents the amount of money invested by the owner(s) into the business.
2. Purchase Equipment: This refers to the cost of acquiring equipment for use in the business.
3. Motor van: This represents the value of a motor vehicle owned by the business.
4. Stock 1/1/2013: This refers to the value of inventory or goods held by the business as of January 1, 2013.
5. Rent received: This represents the amount of money received from renting out a property owned by the business.
6. Creditors: This refers to the amount of money owed by the business to its suppliers or vendors.
7. Debtors: This represents the amount of money owed to the business by its customers who have not yet paid their debts.
8. Sales: This represents the total revenue generated by the business from selling its products or services.
9. Furniture and fittings: This refers to the value of furniture and other fixtures owned by the business.
10. Cash: This represents the amount of money held in the business's cash account.
11. Discount received: This refers to any discounts granted to the business by its suppliers or vendors.
12. Discount allowed: This represents any discounts granted by the business to its customers.
13. Provision for doubtful debt: This is an estimate of the amount of money that may not be collected from debtors due to potential non-payment.
14. Bad debt: This represents the amount of money that has been deemed uncollectible and is written off as a loss.
15. Salaries: This represents the total amount of money paid to employees as wages or salaries.
16. Drawings: This refers to the amount of money withdrawn by the owner(s) from the business for personal use.
17. General expenses: This represents the total amount of money spent on various operating expenses not categorized elsewhere.
18. Lighting: This represents the cost of lighting expenses incurred by the business.
19. Insurance: This refers to the amount of money paid for insurance coverage.
20. Loan at 6/2% interest per annum: This represents a loan taken by the business with an annual interest rate of 6/2% (6.25%).
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