1.

Classify the following as Asset, Liability, Income/Gain, Expense/Loss for ABZ Ltd
a) Building-ASSEST
b) Salary-LIABILITY
c) Trade Receivable-ASSET
d) Advance received from Customer-ASSET
e) Electricity-LIABILITY
f) Salary Payable-EXPENSE
g) Sales-INCOME
h) Loan from XYZ Bank-LIABILITY
i) Shares of MNL Ltd-ASSET
j) Interest on Investments-EXPENSE
k) Trade Payable-EXPENSE
l) Travel Advance to employee-EXPENSE
m) Advance given to supplier-EXPENSE
n) Insurance premium-EXPENSE
o) Advertisement-EXPENSE
p) Rent Deposit-REIMBURSABLE EXPENSE
q) Rent-EXPENSE
r) Computers-ASSET
s) Interest on Bank Loan-LIABILITY

2. Assets are Rs 45,00,000/-. 60% is funded by liabilities. What is the amount of equity?
1800000

3. Liabilities are twice the Equity of Rs 12,50,000/-. What is the amount of total assets?
3750000

4. Current Assets of Rs 60,00,000/- are 40% of total assets and 2.5 times the current liabilities.
Equity is 1/3rd of non-current liabilities. Find non-current assets, total assets, equity, non-
current liabilities & current liabilities.
Total asset- 15000000
NC asset-9000000
Current lia-2400000
NC lia= 9450000
Equity= 3150000

5. At beginning of year assets were Rs 20,00,000/- and proportion of equity to liabilities was
3:7. During the year assets increased by 15%, liabilities decreased by 10%. Find equity &
liabilities at beginning of the year. Find assets, equity & liabilities at end of the year.

Beginning of the year-

E= 600000
L= 1400000

EOY-
A= 2300000
L= 1260000
E= 1040000