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