G Brown has the following items in her balance sheet as on 30 April 2018: Capital GH18,400; Creditors GH2,100; Fixtures GH2,800; Car GH3,900; Stock of goods GH4,550; Debtors GH2,780; ;Cash at bank GH6,250; Cash in hand GH220.

During the first week of May 2018

(a) She bought extra stock for goods GH400 on credit.

(b) One of the debtors paid her GH920 by cheque.

(c) She bought a computer by cheque GH850.

You are asked to draw up a balance sheet as on 31 May 2018 after the above transactions have been completed. Use the above information to answer question number 1 to number 8.

1. What is the value of Non-Current assets as at 31 May 2018

A.GH6,700

B.GH7,550

C. GH20,500

D.GH22,670

E.None of the Above

2.What is the value of Current assets as at 31 May 2018

A. GH13,350

B. GH14,200

C. GH15,120

D. GH15,970

E. GH22,67

3.What is the value of Current liabilities as at 31 May 2018

A. GH2,100

B. GH2,500

C. GH2,950

D. GH3,020

E. None of the Above

4.What is the value of the working capital as at 31 May 2018

A. GH10,850

B. GH11,700

C. GH12,620

D. GH13,020

E. GH18,400

5.What is the value of the Net assets as at 31 May 2018

A. GH13,020

B. GH18,400

C. GH19,200

D. GH20,500

E. GH22,670

6.What is the value of the Total assets as at 31 May 2018

A. GH20,500

B. GH20,170

C. GH20,900

D. GH21,750

E. GH24,770

7.What is the value of the Net worth as at 31 May 2018

A. GH22,670

B. GH21,750

C. GH20,750

D. GH20,170

E. GH18,400

8.What is the Cash at bank as at 31 May 2018

A. GH6,250

B. GH6,320

C. GH6,750

D. GH6,720

E. GH7,170

9.Which of the following statements is incorrect?

A. Assets Capital = Liabilities

B. Liabilities + Assets = Capital

C. Liabilities + Capital = Assets

D. Assets Liabilities = Capital

E. None of the above

10.Which of the following is not an asset?

A. Buildings

B. Cash balance

C. Debtors

D. Goodwill

E. Loan from K Harris

11.Which of the following is a liability?

A. Machinery

B. Cash at Bank

C. Motor Vehicles

D. Creditors for goods

E. Copy Right

12.Which of the following is incorrect? Where A=Assets, L=Liabilities and C=Capital

All figures are in Ghana Cedis

A. A=7,850 L=1,250 C=6,600

B. A=8,200 L= 2,800 C= 5,400

C. A=9,550 L= 1,150 C= 8,200

D. A=6,540 L= 1,120 C= 5,420

E. None of the above

13.Which of the following statements is correct? Where represent an increase

And represent a decrease

A. Bought goods on credit; Stock and Capital

B. A debtor paid us 90 in cash; Cash and Debtors

C. J Hall lends us 500 by cheque; Bank and Loan from Hall

D. We paid a creditor by cheque; Bank and Creditors

E. None of the above

14.(2 point)

Which of the following are correct?

(i) Assets increase at Debit and decrease at Credit

(ii) Capital increase at Debit and decrease at Credit

(iii) Liabilities increase at Credit and decrease at Debit

A. (i) and (ii)

B. (ii) and (iii)

C. (i) and (iii)

D. (i), (ii) and (iii)

E. None of the above

15.(2 point)

Which of the following are correct?

(i) Bought office furniture for cash; Dr. Office furniture and Cr.Cash

(ii) A debtor, P Sangster, pays us by cheque; Dr. Bank and Cr. P Sangster

(iii) Introduced capital by cheque; Dr. Capital and Cr. Bank

(iv) Paid a creditor, B Lee, by cash; Dr. B Lee and Cr. Cash

A. (i), (ii) and (iii) only

B. (ii), (iii) and (iv) only

C. (i), (ii) and (iv) only

D. (i) and (iv) only

E. None of the above