Review Questions

Volume 1 - Chapter 1
1. Complete the gaps in the following table:

Assets Liabilities Capital

(a) 26,500 3,670 ?
(b) 14,333 ? 9,505
(c) ? 4,490 12,660
(d) 54,337 ? 38,990
(e) 29,001 ? 27,555
(f) 9,560 58 ?

2. Classify the following items into assets and liabilities:

(a) Fixtures and fittings

(b) What we owe our bank
(c) Accounts payable
(d) Cash in till
(e) Motor car
(f) Goods held by the firm

3. Draw up the balance sheet for K Webb from the following information as at 31
March 20X7.

Capital 15,550
Premises 26,800
Bank loan 15,000
Inventory 450
Cash at bank 240
Accounts payable 160
Equipment 2,800
Accounts receivable 420

4. Complete the gaps in the following table:

Assets Liabilities Capital

(a) 1,143 564 ?
(b) ? 7,868 24,684
(c) ? 43,244 130,990
(d) 56,826 ? 14,512
(e) 98,693 21,414 ?
(f) 77,657 ? 22,193
5. Which of the following are shown under the wrong headings?

Assets Liabilities
Inventory for resale Cash in till
Amounts due on stocks purchased Amounts owing to firm by debtors
Loan made by the firm to another firm Mortgage
Bank overdraft
Machinery