Name: _______________________________
Grade: _________
Business Studies
Answer all Questions
10 marks
1. Define the term Accounting Equation?
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2 marks
2. Using the accounting equation and calculate the missing figure. Show all workings.
Business A
Total assets
Capital
Total liabilities
$
$
$
220000
Business B
912000
Business C
560000
Business D
170000
Business E
86000
30000
42000
24000
80000
20000
10 marks
3. Kisha owns a restaurant. The following information is available about her business’s
assets and liabilities on 31 January 2011.
Restaurant premises –570,000
Bank loan – 120,000
Cash in hand – 6,000
Equipment – 24,000
Inventory – 18,000
Trade payables – 3,000
Trade receivables – 9,000
Cash at bank – 12,000
a. Calculate the total assets and liabilities.
b. Using the accounting equation calculate the business’s capital
c. Prepare a classified balance sheet at 31 January 2011, in order of permanence.