Below are two questions and answers on topics on Accounting Equation:
Question No 1: Fill In The Blank for the following:
| 1.0 |
Assets |
Liabilties |
Capital |
|
a |
40,000 |
10,000 |
? |
|
b |
15,000 |
? |
11,000 |
|
c |
? |
5,000 |
10,000 |
|
d |
11,000 |
8,000 |
|
Answer:
1a $30,000 ($40,000-$10,000)
1b $4,000 ($15,000-$11,000)
1c $15,000 ($5,000+$10,000)
1d $3,000 ($11,000-$8,000)
Question No. 2:
The following is the summary data of XYZ Ltd for July presented in equation form. Describe each of the transactions that occurred during July.
|
2.0 |
ASSET Cash |
ASSETS Supplies |
ASSETS Equipment |
= LIABILITIES |
+
|
|
|
a |
+$10,000 |
|
|
|
+$10,000 |
Capital |
|
b |
-$2,000 |
|
+$2,000 |
|
|
|
|
c |
-$200 |
+$200 |
|
|
|
|
|
d |
|
|
+$700 |
$700 |
|
|
|
e |
+$1,000 |
|
|
|
+$1,000 |
Income |
|
f |
-$600 |
|
|
|
-$600 |
Salaries |
|
g |
-$300 |
|
|
-$300 |
|
|
|
h |
-$100 |
|
|
|
-$100 |
Drawing |
|
|
$7,800 |
$200 |
$2,700 |
= $400 + |
$10,300 |
Answer:
2a The owner made an investment by injecting cash as capital
2b Equipment was bought and paid for
2c Supplies were bought and paid for
2d Additional equipment was bought on account creating a liability
2e The company recorded an income for work done for customers
2f The company paid salaries to the workers
2g Cash was paid to reduce amount owing to Accounts Payable(Liability)
2h Owner withdrew cash for her personal use.