vcaa 2010 question, help !!

[luke_rulz94]

1.1 Bazza Barbies commenced business on 1 January 2010 when Barry Burke contributed cash ($10 000) and
a delivery van (agreed value $20 000).
Bazza Barbies agreed to purchase the stock and take over the rental agreement for the premises of an
existing business as of 1 January 2010. The stock had an agreed value of $35 000 plus $3 500 GST and
this was paid for on 31 January – Cheque No. 101. The premises was rented at $2 000 (+ $200 GST) per
month, normally payable on the first day of each month. The first rent payment is to be made on 1 February
when both January and February’s rent will be paid.
On 31 January the business also borrowed $50 000, repayable over five years, with equal repayments at
31 December of each year, plus interest.
Trading began on 1 February 2010.


The solutions say Bank is 21500,
Can someone please explain how they came to this figure ?

[link125]

Did you get this out of checkpoints? I remember doing this question in it I think...

Now I'm assuming it wants to know the value of the Bank at the end of January - Did the question ask for Bank at the end of January? Because if it did we do not include Rent for January in our calculation for Bank as it is being paid on February 1 along with February's Rent

So to get 21500, we do:

10,000 (Cash contribution) - 38,500 (Stock) + (50,000) Loan = 21,500