Extract of Balance sheet items as at 31 December 2020 OR Equipment 20000 Goodwill 4500 Creditors 1000 Land 35000 Account 3500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Calculate Total Net
Assets(Total Assets)
Extract of Balance sheet items as at 31 December 2020
OR
Equipment
20000
Goodwill
4500
Creditors
1000
Land
35000
Account
3500
receivables
Сapital
11500
Closing Stock
15000
3000
MC
Loan
Bank overdraft
3200
Cash
2500
Mortagage loan
7500
Machinery
1650
Trade payables
5700
Accumulated Depreciation (Equipment)
1000
Short term Investments
2200
Trade marks
6000
Drawings
1000
Retained Earnings
9150
Prepaid Expenses
2300
Transcribed Image Text:Calculate Total Net Assets(Total Assets) Extract of Balance sheet items as at 31 December 2020 OR Equipment 20000 Goodwill 4500 Creditors 1000 Land 35000 Account 3500 receivables Сapital 11500 Closing Stock 15000 3000 MC Loan Bank overdraft 3200 Cash 2500 Mortagage loan 7500 Machinery 1650 Trade payables 5700 Accumulated Depreciation (Equipment) 1000 Short term Investments 2200 Trade marks 6000 Drawings 1000 Retained Earnings 9150 Prepaid Expenses 2300
The company made a sale of goods for RO. 15000
(cost RO 10000) and received 30% in cash and
balance on the account. Which of the following is the
correct presentation on the accounting equation?
Select one:
O a.
Assets
Liabilities
+ Owners' Equity
-10000
+ + 2000 (Profit)
(stock of
goods)
+12000
(Cash )
Assets
Liabilities
+
Owners'
Equity
-10000
+
+ 5000
%3D
(Profit)
(stock of goods)
+4500
(Cash)
+ 10500
(Receivables)
O c.
Assets
Liabilities
Owners'
Equity
-10000
+ 11500
+ 3000
(Receivables)
(Profit)
(stock of
goods)
+4500
(Cash)
O d.
Assets
Liabilities
+ lowners' Eguityl
Transcribed Image Text:The company made a sale of goods for RO. 15000 (cost RO 10000) and received 30% in cash and balance on the account. Which of the following is the correct presentation on the accounting equation? Select one: O a. Assets Liabilities + Owners' Equity -10000 + + 2000 (Profit) (stock of goods) +12000 (Cash ) Assets Liabilities + Owners' Equity -10000 + + 5000 %3D (Profit) (stock of goods) +4500 (Cash) + 10500 (Receivables) O c. Assets Liabilities Owners' Equity -10000 + 11500 + 3000 (Receivables) (Profit) (stock of goods) +4500 (Cash) O d. Assets Liabilities + lowners' Eguityl
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