Assets
Premises
Fees owing by parents
Fixtures and equipment
Cash in hand
Computers and IT equipment
Motor vehicles
Total assets
Liabilities
Current liabilities
Bank loan
8 195 000
180 000
350 330
13 050
446 940
2 000 000
11 185 320
351 320
194 950
(546 270)
10 639 050
Capital
Revenue
Collection of fees
Investment income from money market security
Discount received
Total revenue
Operating expenses
Interest
Bad debts written off
General administrative expenditure
Sales and marketing cost
Wages and salaries expenses
Internet and utilities charges
Net profit
36 000 000
250 000
400 000
36 650 000
3 899
1 000 000
9 000 000
13 000 000
5 000 000
100 000
28 103 899
8 546 101
Case study answers
1. What is the balance b/f on the cash account at March 7? $269 050
2. Identify the accounts affected from the investment made by Mr. Fu Yong. Capital
Account
3. Advise Mr. Fu Wong on two accounts on the trial balance that usually carry a debit
balance. Investments and carriage outwards
4. Name the MAIN ledger which Fu Yong would use to record his transactions. General
Ledger
5. Identify the appropriate book of original entry for the transactions above. Purchases
Daybook
6. Give an example of a non-current asset that little stars preschool might need to
incorporate into this establishment. Motor vehicles
7. Which of the following is the correct double entry to record the adjustment for the
accrual at the end of the period. 1
8. Name a source document that Fu would use to draw up his sales day book. 1
9. The balance b/f on the cash account would be recorded on the credit side of the trial
balance. False
10. The total from the day book identified from the transactions above will be posted to
which account in the general ledger. 2
11. Identify the appropriate book of original entry for the transactions above. Purchases
Daybook
12. The total value of current liability is 351320
13. The capital for Mr. Fu Yong is 10639050
14. The total value of assets is 11185320
15. The net profit for the 6-month period is 8546101