UNIVERSITY OF THE COMMONWEALTH CARIBBEAN

SCHOOL OF BUSINESS & MANAGEMENT

FUNDAMENTALS OF ACCOUNTING

TUTORIAL/WORKSHEET # 1

1. T. Hill sets up a new business. Before he begins trading he bought a motor car for
$2,000, premises cost $5,000 and has stock valued $1,000. Mr. Hill did not pay in full
for his stock of goods and still owes $400 in respect of them. He had borrowed $3,000
from R. Glue. After these set-up events and before he starts trading, T. Hill has $100
cash in hand and $700 cash at bank.

Required: Calculate the amount of T. Hill’s capital.

2. Prepare Bolt’s Accounting Equation from the following items.

Capital $13,000
Office machinery 9,000
Creditors 900
Stock of goods 1,550
Debtors 275
Cash at bank 5,075
Loan from C. Smith 2,000

3. Below is a list of balances for Sea & Sand Hotel, taken from the business’ books for
the financial year ended March 31, 2015.

$
Stock 85 000
Equipment 9 000
Fixtures and Fittings 60 000
Bank 48 000
Capital ?
Loan (repayable August 2015) 7 000
Debtors 50 000
Mortgage (repayable 2021) 205 000
Land and Building 350 000
Cash Asset 22 000
Creditors 12 000
Motor Vehicles 80 000

Required: Calculate the value of Sea & Sand Hotel’s Capital as at 31 March 2015.

1
 4.

$
Liabilities Capital
Assets
a)
? 40,000
64,800
b) 46,000 17,600 ?
c) 38,400 ? 6,400
d) 16,200 ? 13,000
e) ? 15,800 34,600
f) ? 37,000 103,800
4. Complete the gaps in the following table: