Grade 8 – General Commerce
Revision Worksheet - Answers
The following balances of Narmada’s business were shown as at
01.01.2019
£
Bank Account
50 000
Motor vehicles
38 000
Debtors
24 000
Cash
16 500
Bank loan
40 000
Creditors
26 500
Computers
17 000
The following transaction occurred in month of January 2019
1.
2.
3.
4.
5.
6.
7.
8.
Withdrew cash from bank account £10 000
Received sales income £8 000 to the business bank account
Paid fuel charges for Narmada’s personal vehicle £200
Paid bank loan installment £3 000 including £500 as the
interest
Purchased 2 computers each £1 200 and paid through bank
account
Paid salaries £6 000 by cash
Purchased a motor vehicle £25 000 and paid only £5 000
Paid telephone bill £150
9. Earned an income £2 000 and received only £500 from the
customer.
10. Paid for creditors £3 500 through bank account.
11. Payable electricity bill for month of January £1 100
12. Received money from debtors £1 500
(i)
(ii)
Calculate the capital as at 01.01.2019
Show the effect of transactions to the accounting equation
(i)
Capital = Asset – Liabilities
= 145 500 – 66500
= 79 000
No.
Cash
+
Bank
Acc.
+
£
Bala
nce
16 500
50 000
(i)
+10 000
-10 000
(ii)
(iii)
(iv)
Motor
Vehicles
+
£
38 000
Computers
+
Debtors =
£
£
17 000
24 000
+8 000
Capital
£
79 000
+
Creditors +
£
26 500
-200
-500
-2400
-2 500
+ 2 400
-6 000
-6 000
(vii)
-5 000
-150
(ix)
+500
(x)
(xi)
40 000
-200
-3 000
(viii)
£
+ 8 000
(v)
(vi)
Bank loan
+25 000
+20 000
-150
+1 500
+2 000
-3 500
-3 500
-1 100
+1 100
(xii)
+1 500
-1 500