Tutorial 2

EXERCISE 1

Calculate the amount for the missing accounting element in each scenario in the following table,
by using the accounting equation.

Scenario Assets Liabilities Owner’s Equity

1 $56 000 $45 000

2 $123 000 $34 000

3 $330 000 $67 000

4 $100 000 $98 000

5 $100 000 $51 500

6 $89 612 $34 567

7 $102 789 $0

8 $567 000 $234 500

9 $1 000 000 $1

EXERCISE 2

1. Assets of the business were 100,000. Capital was 80,000 and Liabilities were
20,000.
What will be the asset value if the business borrowed 10,000 more.

2. Assets of the business were 100,000. Capital was 80,000 and Liabilities were
20,000.
What will be the asset value if the owner invested 25,000 more in the business.

3. Assets of the business were 100,000. Capital was 80,000 and Liabilities were
20,000.

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 What will be the asset value if the business repaid 10,000 of liabilities.

4. Assets of the business were 100,000. Capital was 80,000 and Liabilities were
20,000.
What will be the liabilities if the business repaid 5,000 of liabilities.

5. Assets of the business were 100,000. Capital was 80,000 and Liabilities were
20,000.
What will be the capital if the owner drew 10,000 from the business for personal use.

EXERCISE 3

1. If total assets are $200,000, current liabilities are $30,000, and non-current liabilities
are $50,000, what is the value of owner's equity?

2. If current assets are $80,000, non-current assets are $120,000, and current liabilities
are $25,000, what is the value of non-current liabilities?

3. If owner's equity is $60,000, non-current liabilities are $40,000, and current liabilities
are $20,000, what is the value of total assets?

4. With current liabilities at $15,000, non-current liabilities at $25,000, and total assets
at $120,000, what is the value of current assets?

5. If total assets are $300,000, current liabilities are $50,000, and non-current liabilities
are $120,000, what is the value of owner's equity?

EXERCISE 4

Classify each of the following items as current asset (CA), non-current asset (NCA),
current liability (CL), non-current liability (NCL) and owner’s equity:

i) Fixtures and Fittings

ii) Creditors
iii) Equipment
iv) Cash in hand

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v) Bank overdraft
vi) Stock
vii) Bank loan (due 9 months)
viii) Bank loan (due 36 months)
ix) Computer
x) Debtors
xi) Term deposit
xii) Capital
xiii) Land

EXERCISE 5

Rehan’s Business had the following assets and liabilities as at 31st December 2022.

Account $
Stock control 35 000
Creditors control 16 000
Debtors control 24 000
Cash 6 000
Bank CR 12 000
Bank Loan (18 months) 40 000
Fittings & Fixtures 50 000
Term Deposit 10 000

Calculate the following:

i) Current assets
ii) Non-current assets
iii) Total assets
iv) Current liabilities
v) Non-current liabilities
vi) Total liabilities
vii) Equity

EXERCISE 6

Nihal’s Business had the following assets and liabilities as at 31st March 2022.

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 Account $
Stock of material 35 000
Creditors control 16 000
Debtors control 24 000
Cash 6 000
Bank CR 12 000
Bank Loan (24 months) 40 000
Equipment 50 000
Term Deposit 10 000

Calculate the following:

i) Current assets
ii) Non-current assets
iii) Total assets
iv) Current liabilities
v) Non-current liabilities
vi) Total liabilities
vii) Equity

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