Cambridge IGCSE and O Level Accounting
Worksheet 1.1: Introducing accounting
1 Complete the table by writing a definition of each of the following
accounting terms.
Accounting term
Assets
Definition
Liabilities
Capital
Inventory
Trade receivables
Trade payables
1
2 State three ways in which the accounting equation can be expressed.
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3 Complete the following table by inserting the missing figures.
Assets
$
126 500
163 250
...............
205 340
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Liabilities
$
84 500
...............
19 380
112 590
Capital
$
..............
125 000
79 000
...............
Cambridge IGCSE and O Level Accounting
4 Complete the table by placing a tick (✓) in the correct column to indicate
whether each item is an asset or a liability.
Asset
Liability
Premises
Loan from AB Loans
Inventory
Trade payables
Motor vehicle
Balance at bank
Loan to employee
Trade receivables
5 Bonile provided the following information at 1 January 20–9:
Premises $125 000, machinery $78 500, loan from XY $40 000, fixtures
and fittings $23 200, inventory $11 820, trade payables $12 320, trade
receivables $9 870, balance at bank $8 630.
Prepare a statement of financial position on 1 January 20–9 using the
information. Insert the figure for the capital.
Bonile
Statement of financial position at 1 January 20–9
Assets
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$
Liabilities
$
2
Cambridge IGCSE and O Level Accounting
6 State the effect the following transactions would have on the items in
Leo’s statement of financial position.
Transaction
Paid $400 by cheque to a
trade payable
Purchased additional
machinery, $5000, by cheque
Effect on assets
Effect on liabilities
3
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