Bafs Exercises
Exercises for Chapter 1 1. Ming started a business with $3,000 cash. He used $1,200 of the cash to buy office equipment. (a) Find the assets, capital and liability of Ming’s business. Assets: Cash ($1,800) & Office equipment ($1200) Capital: $3,000 Liability: $0 (b) What is the amount of total resources in Ming’s business? A. $3,000 B. $6,000 C. $1,800 D. $4,800 2. ‘Total assets must equal to total capital plus total liability.’ Do you agree? Why? Yes, resources owned by a firm (assets) must be either supplier by the owner(s) (i.e. capital) or borrowed from others (i.e. liabilities).
3. Compute the missing amount in the accounting equation for each business:
Assets $ (a) (b) (c) (d) (e) (f) Business A Business B Business C Business D Business E Business F 9,834 88,328 346,552 577,234 92,028 316,588 Liabilities $ 4,568 53,983 47,439 32,453 5,564 313,444 5,266 34,345 299,113 544,781 86,464 3,144 Capital $
4. Explain whether the following transactions should be recorded in the books of Daniel’s business: (a) Daniel spent $730 on having dinner with his family. No No Yes
(b) Daniel deposited $100 of his own cash with the bank account of his wife. (c) Daniel deposited $120 of his own cash with the business bank account. (d) Daniel took $150 goods from the business for his personal use. Yes
(e) Which accounting principle did you apply when answering the above questions? State the principle. Business Entity Concept. Business transactions are recorded separately to distinguish them from the owner’s personal transactions.
S.3 EPA Exercises E1
Exercises for Chapter 2 1. Evergreen Enterprise was formed on 1 January 2010. The sole trader, Mr Leung, put $200,000 cash into the business as his initial investment. Record the transactions below. 2010 Jan " " " " " "
2 3 9 10 17 25 30
Opened a business bank account with $140,000, which was borrowed from Amy Pang. Bought two conference tables for $4,000 each on credit from Benjamin & Co. Paid for the
3. Compute the missing amount in the accounting equation for each business:
Assets $ (a) (b) (c) (d) (e) (f) Business A Business B Business C Business D Business E Business F 9,834 88,328 346,552 577,234 92,028 316,588 Liabilities $ 4,568 53,983 47,439 32,453 5,564 313,444 5,266 34,345 299,113 544,781 86,464 3,144 Capital $
4. Explain whether the following transactions should be recorded in the books of Daniel’s business: (a) Daniel spent $730 on having dinner with his family. No No Yes
(b) Daniel deposited $100 of his own cash with the bank account of his wife. (c) Daniel deposited $120 of his own cash with the business bank account. (d) Daniel took $150 goods from the business for his personal use. Yes
(e) Which accounting principle did you apply when answering the above questions? State the principle. Business Entity Concept. Business transactions are recorded separately to distinguish them from the owner’s personal transactions.
S.3 EPA Exercises E1
Exercises for Chapter 2 1. Evergreen Enterprise was formed on 1 January 2010. The sole trader, Mr Leung, put $200,000 cash into the business as his initial investment. Record the transactions below. 2010 Jan " " " " " "
2 3 9 10 17 25 30
Opened a business bank account with $140,000, which was borrowed from Amy Pang. Bought two conference tables for $4,000 each on credit from Benjamin & Co. Paid for the