W1S1 - The Accounting Equation
Question 1
Complete the gaps in the following table:
Assets
12850
2365
650
5200
a
b
c
d
e
f
g
h
i
Liabilities
3870
Capital
2000
540
750
7500
2560
450
27650
750
15500
2500
2000
24560
35750
Question 2
Which of the following are assets?
a
b
c
d
e
f
g
h
i
Description
Cash
Bank loan
Motor car
Goods in stock
Debt owed by a business to a supplier
Rent owed to landlord
Deposit bank account
Debt owed to a business by a customer
Factory

Question 3
Which of the following are in the wrong column and how much is the capital figure?
ASSETS
Bank loan
Debt owed to a supplier
Goods in stock
Rent owed to landlord
Deposit bank account
Workings:
£
5000
4200
8500
500
4250
LIABILITIES
Cash
Factory
Motor car
Debt owed by a customer
£
4500
50000
9500
1250
Question 4
State the ‘accounting equation’ and explain the meaning of each of the terms used in
the equation.
Question 5
Write out the accounting equations for each of the following:Fred invests £100,000 into his business by putting it into a bank account
He spends £50,000 on premises and £15,000 on equipment paying by cheque
He buys a £10,000 van on credit
Question 6
Write out the accounting equations for each of the following:Anita invests £5,000 of her own money. She also obtains a loan of £5,000 from the
bank. She puts it all into an account.
She spends £2,000 on a van and £6,000 on equipment
She obtains £3,000 worth of stock on credit.