Question 2

Let Assets=A
Let Liabilities=L
Let Owner’s Equity=OE

1)A=L+OE
380000=L+155000
L=380000-155000
L=255000
∴The amount of liabilities is RM 255000.

2)A=L+OE
A=65000+79500
A=144500
∴The amount of Assets is RM 144500.

3)A=L+OE
1
A=3A+180000
1
A-3A=180000
2
A=180000
3

A=270000
∴The amount of Liabilities is RM 270000.
4) Beginning of the year: A=L+OE
310000=L+150000
L=310000-150000
L=160000
Hence, at the beginning of the year, the amount of liability is RM 160000.
During the year, the assets increased RM 45000 and liabilities decreased RM 22500.

A=L+OE
(310000+45000) = (160000-22500) +OE
355000-137500=OE
OE=217500
∴The owner’s equity at the end of the year is RM 217500