Chapter 3 Accounting Equation

Alex the owner, contributed $12,000 cash and $4,000 office equipment into the business. Total expenses incurred was $5,600 and total income earned was $9,800.

Calculate the equity at the end of the year.

• $31,400

• $15,400

• $11,800

• $4,200

The business took a loan of $50,000 to purchase a motor vehicle costing $18,400 and goods costing $23,000. The remainder was banked in.

Select all possible effects on the accounting elements.

• Assets increased by $41,400

• Liabilities increased by $50,000

• Liabilities decreased by $50,000

• Equity decreased by $50,000

• No effect on Equity

Capital at 1 April 2020 was $11,900. Sales revenue for the year was $43,000. Cost of sales totalled $25,600. Other operating expenses amounted to $7,000.

Calculate the equity at 31 March 2021.

• $87,500

• $73,500

• $22,300

• $1,500

On 31 May 2023, Adeline's business had the following: cash at bank $15,000, inventory $6,200, trade payables $3,800. The business had taken a loan, and the capital at 31 May 2023 was $3,400.

Calculate the bank loan.

• $1,600

• $14,000

• $21,600

• $28,400

On 30 June 2023, Sarah's business had the following: inventory $9,400, trade receivables $8,600, and motor vehicles $1,000. The business had taken a loan of $20,000, and the capital at 30 June 2023 was $3,800.

Calculate the cash at bank balance.

• Cash at bank $4,800

• Cash at bank $6,800

• Overdraft

  $800

• Overdraft

  $1,800

On 31 March 2023, Syafiq's business had the following: trade receivables $5,900, furniture $4,200, trade payables $6,600, and bank overdraft $300.

Which of the following is true?

• Total Assets

  $5,900

• Total Assets

  $10,100

• Total Assets

  $10,400

• Total Liabilities

  $6,600

• Total Liabilities

  $6,900