GRADE 8 ACCOUNTING TERM 2

Worksheet 1: Revision TOTAL: 70

Question 1: Theory

1. Differentiate between the following:

a) Initial Stock and Final Stock (4)
b) Fixed Assets and Current Assets (4)
c) Profit and Loss (2)

2. Explain the term Owner’s Equity and identify the two accounts. (4)

3. Explain two types of business activity and give an example of each. (6)

4. Classify the following as either an income, expense, fixed asset or current

asset:
a) Equipment
b) Stationery
c) Petty Cash
d) Purchases
e) Sales
f) Commission Received (6)

5. Sannie’s Ice Cream Shop purchased 10 chocolate Ice creams for N$ 50.00,
she sells each ice cream for N$ 7.00. Calculate whether the business made a
profit or loss. (4)
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Question 2: Accounting Equation

1. State the Accounting Equation. (1)

2. Copy and complete the following table: (3)

Assets Owner’s Equity Liabilities

Example N$100 000 N$60 000 N$40 000
a) N$145 000 (i) N$25 000
b) (ii) N$36 000 N$14 000
c) N$25 000 N$16 500 (iii)

3. Use the following transactions to complete the Accounting Equation: (36)

1 Example: Paid the water and electricity account by EFT, N$ 5 500.

2 Owner deposited N$ 100 000 into the business bank account as his capital
contribution.

3 N$ 25 000 paid by EFT for cash registers and other equipment.

4 Bought merchandise with debit card, N$ 8 450.

5 Cash sales, N$ 16 900.

6 Withdrew N$ 500 for cash float.

7 Owner took N$ 250 from cash for his own use.

 No ASSETS OWNERS’ EQUITY LIABILITIES Account to be Account to be
Effect Reason Effect Reason Effect Reason debited credited
Water &
Electricity Water and
1. - 5 500 Bank decreases - 5 500 Expense 0 Electricity Bank

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