1. At the beginning of the year, EFR Company had total assets of P2,000,000 and total
liabilities of P1,000,000. During the year, total equity increased by P500,000 while total
liabilities decreased by P200,000. How much is total owner’s capital by the end of the
year? P1,500,000
Beginning of the year
During the year
End of the year balances
A
2,000,000
300,000
2,300,000
=
=
=
=
L
1,000,000
- 200,000
800,000
+
+
+
+
OE/C
1,000,000
500,000
1,500,000
2. Refer to the information provided in the previous question. How
much is the total assets by the end of the year?
P2,300,000
3. Refer to the information in question 1, what happened to assets
during the year?
Increased by 300,000
4. Owner’s capital is P1,200,000. If creditors have a 65%
claim on total assets, how much is total assets?
100%
A
3,428,571
65%
=
L
2,228,571
2,228,571
1,200,000
35%
35%
+
OE
1,200,000
5. Assets amounted to P200,000. 25% of which is equity, how
much must be the liabilities?
100%
A
200,000
75%
=
L
150,000
+
25%
OE
50,000
50,000
5. Assets amounted to P2.5M. 1/4 of which is liability, how much is
equity?
4/4
1/4
A
2,500,000
=
L
625,000
3/4
+
OE
1,875,000
1,875,000
Equity is P300,000. This represents 60% of the total assets. How
much is the liability?
100%
A
500,000
40%
=
L
200,000
300,000
60%
100%
500,000
60%
+
OE
300,000
If total assets increased by P54,500 and owner’s equity increased by
P40,000 during the period, the amount and direction (increase or decrease)
of the period’s change in total liabilities was
If total assets increased by P54,500 and owner’s equity decreased by
P40,000 during the period, the amount and direction (increase or decrease)
of the period’s change in total liabilities was
A
54,500
=
L
94,500
+
OE
-
40,000