Tutorial 1

Exercise 1

1. Using the accounting equation, what is the capital if assets are 40,000 and
liabilities are 25,000?

2. Using the accounting equation, what are the liabilities if assets are 40,000 and
capital is 20,000?

3. Using the accounting equation, what are the assets if liabilities are 5,000 and
capital is 6,000?

4. Using the accounting equation, what is the capital if assets are 41,000 and
liabilities are 6,000?

5. Using the accounting equation, what are the liabilities if assets are 12,000 and
capital is 7,000?

Exercise 2
Exercise 3
Anushka began a sole trade business on 1 January 20X1. During the first month of
trading, the following transactions took place.

1. She started the business with $5,000 of cash

2. She took out a loan from the bank of $10,000
3. She repaid $250 of the loan
4. She purchased a van for $12,000 cash
5. She took $100 from the business bank account to cover a personal expense.

Required: Show the effect of each transaction on the accounting equation