Class Activity

Classify the following items into assets and liabilities.

Motor vehicles assets

Premises/ land assets
Creditors for goods liability
Stock of goods assets
Debtors liability
Owing to bank liability
Cash in hand assets
Loan from D. Jones liability
Machinery assets
We owe for goods liability

Fill in the gaps in the following table using the accounting equation.

Assets $ Liabilities $ Capital $

a.12, 500 1, 800 10,700

b.28, 000 4,900 23,100

c.16, 800 4,300 12, 500

d.29,600 13,150 16,450

e.25,500 6,300 19, 200

f.51,400 11, 650 39, 750

3. Prepare a Trading, Profit and loss account for the year ended December 31, 2007 for L. Sands.
Below is a list of his balances for the year
DR $ CR $
Sales 38 500
Purchases 29, 000
Rent 2, 400
Electricity 1, 500
General expenses 600
The closing stock of the business was $3000

/
Trading, profit and loss for the year ended December 31,2007 for
L.Sands
sales 38,500
Less lost of goods sold:
Add Purchases 29,000
Lost of Goods available for resale 29,000
Less closing stock ( 3,000)
( 26,000)
Gross profit 12,500

Less Expenses
rent 2,400
Electricity 1,500
General Expenses 600

(4,500)
Net Profit 8,000

Tajae Perkins
96