K_ AssetsLiabilitiesCapital

(i) 50,000 7,200 ? (ii) 112,000 19,600 ?

(iii) 67,200 ? 50,000 (iv) 96,400 ? 65,800 (v) ? 25,200 76,800

(vi)?50,600159,000

(6 marks)

2.2Classify the following into Assets and Liabilities.

(i)Bank balance(vii)Premises

(ii)We owe for goods (viii)Creditor for goods

(iii)Motor vehicle(ix)Loan from D Randle

(iv)Fixture and fittings(x)Cash in hand

(v)Loan from Pringle (xi)Owing to bank

(vi)Office machinery(xii)Debtor

(6 marks)

2.3 State which of the following are shown under wrong classification for Kapil Dev's business.

Assets

Liabilities

Loan from A Lamb

Debtors

Motor vehicles

Money owing to bank

Premises

Stock of goods

Creditors

Loan from Riffle

Machinery

Money owing to A Little

Cash in hand

Fixtures

Capital

Creditors

Cash at bank

Buildings

(6 marks)

2.4 Mark Waugh starts business. Before any sales, he has purchased fixtures 12,000, motor vehicle 30,000 and stock of goods 21,000. Although he has paid in full for the fixtures and motor vehicle, he still owes 8,400 for some of the stock. His brother Steve has lent him 18,000. Mark, after the above, has 16,800 in the business bank account and 600 cash in hand. Calculate Mark's capital?

(5 marks)