1

A business has the following items in it:

- Land P1,000,000
- Machinery P20,000
- Cash P10,000
- Loan P500,000
How much is the Owners equity?

Land P 1,000,000
Machinery 20,000
Cash 10,000
Loan (500,000)
Owners equity P 530,000


2
A business has the following items in it:
-Owners equity P 400,000
-Total liabilities P 1,600,000
How much is the Total Assets?

Owners equity P 400,000
Total liabilities 1,600,000
Total assets P 2,000,000

3.
If a building was bought for P750,000 5 years ago with an estimated useful life of
10 years and with no salvage value, what is its carrying value in the balance
sheet?

Building (750,000 x 5/10) P 375,000