CHAPTER 1
THE STATEMENT OF FINANCIAL POSITION
Question 1
(a)
(b)
(c)
(d)
(e)
Vehicle
Shop fittings
Cash at bank
Bank loan
Owner’s investment in the
business
Asset
Asset
Asset
Liability
Capital
(f)
(g)
(h)
(i)
(j)
Inventory
Trade receivables
Bank overdraft
Trade payables
Machinery
Asset
Asset
Liability
Liability
Asset
Question 2
(a)
(b)
Cash in hand
Equipment
Asset
Asset
(f)
(g)
(c)
Amounts owing to suppliers
Liability
(h)
(d)
(e)
Furniture
Land
Asset
Asset
(i)
(j)
Loan from a friend
Value of owner’s
stake in the business
Amounts owed by
customers
Cash at bank
Fittings
Question 3
Business A
Business B
Business C
Business D
Business E
Business F
Total Assets
Assets
$
80 000
42 000
57 000
650 000
190 000
640 000
Total Liabilities
=
Liabilities
$
20 000
11 000
33 000
160 000
20 000
82 000
Capital
+ Capital
$
60 000
31 000
24 000
490 000
170 000
558 000
Total Assets
Assets
$
220 000
912 000
325 000
560 000
917 000
262 000
Total Liabilities
=
Liabilities
$
30 000
86 000
52 000
77 000
52 000
42 000
Capital
+ Capital
$
190 000
826 000
273 000
483 000
865 000
220 000
Question 4
Business G
Business H
Business I
Business J
Business K
Business L
Liability
Capital
Asset
Asset
Asset
Question 5
(a)
(b)
(c)
(d)
Total assets: $456 000
Total liabilities: $90 000
Capital:
$366 000
Donnie’s computer software business
Statement of financial position
at 31 October 2014
$
ASSETS
Premises
Equipment
Delivery vehicle
Inventory
Trade receivables
Cash in hand
CAPITAL
LIABILITIES
Bank loan
Trade payables
Bank overdraft
300 000
90 000
32 000
16 000
14 000
4 000
456 000
$
366 000
60 000
22 000
8 000
456 000
Question 6
(a)
(b)
(c)
Total assets:
$711 000
Total liabilities: $147 000
Capital:
$564 000
Kisha’s restaurant
Statement of financial position
at 31 January 2014
$
ASSETS
Restaurant premises
Equipment
Furniture and fittings
Inventory (food, etc.)
Trade receivables
Cash at bank
Cash in hand
CAPITAL
LIABILITIES
Bank loan
Loan from friend
Trade payables
570 000
51 000
45 000
24 000
3 000
12 000
6 000
711 000
$
564 000
120 000
9 000
18 000
711 000
Question 7
Donnie’s software business
Statement of financial position at 31 October 2014
$
$
NON-CURRENT ASSETS
Premises
300 000
Equipment
90 000
Delivery vehicle
32 000
422 000
CURRENT ASSETS
Inventory
16 000
Trade receivables
14 000
Cash in hand
4 000
34 000
456 000
$
$
CAPITAL
366 000
NON-CURRENT LIABILITIES
Bank loan
CURRENT LIABILITIES
Trade payables
Bank overdraft
60 000
22 000
8 000
30 000
456 000
Question 8
Kisha’s Restaurant
Statement of financial position at 31 January 2014
$
$
NON-CURRENT ASSETS
Restaurant premises
570 000
Equipment
51 000
Furniture and fittings
45 000
666 000
CURRENT ASSETS
Inventory (food, etc.)
24 000
Trade receivables
3 000
Cash at bank
12 000
Cash in hand
6 000
45 000
711 000
$
$
CAPITAL
564 000
NON-CURRENT LIABILITIES
Bank loan
CURRENT LIABILITIES
Trade payables
Loan from friend
120 000
18 000
9 000
27 000
711 000