Accounting

TEST 2
Name :

2
5

Class:

1. Explain the meaning of the terms;

Assets
Liabilities
Capital

2. Jason started business by introducing the following:

[1]

Cheque banked into the business account of $ 30,000. Put in his Motor
Vehicle worth $ 20,000 for use in the business. In addition, he took a
business loan for the business of $ 15,000 and a personal loan of $ 5,000
from his sister. What is the capital brought in by Jason?
A.
B.
C.
D.
3.

$ 70,000
$ 65,000
$ 55,000
$ 50,000

Which of the following would be affected if Dashan brings his computer

into his business?
A.
B.
C.
D.

Assets and liabilities.

Liabilities and capital.
Capital and assets.
Capital and expenses.

4. The basic accounting equation may be expressed as

A.
B.
C.
D.

Assets = Equities
Assets Liabilities = Stockholders Equity
Assets = Liabilities + Stockholders Equity
all of these

[3]

5. Insert the missing figure in each of the following:Assets

$
i.
ii.
iii.
iv.
v.
vi.

6.

500 000
?
245 000
243 000
444 450
?

Capital
$
235 000
75 000
?
120 000
?
239 750

Liabilities
$
?
144 000
145 000
?
244 250
12 340

[6]
Summary financial data of the Cepat Untung trading. for October are
presented below in transaction form.
Date
Example
Oct 1
4
9
12
15
28
30

Transactions
Began operations by depositing $ 22,000 in a business
bank account.
Started business with $ 60,000 in the bank.
Received a loan of $ 10,000 from Mr.Pin Jan Man by
cheque.
Bought a computer for cash $ 5,000.
Bought goods on account from Belli trading $ 3,000
Bought 6 projectors each for $ 500. Paid half of the
price and balance will pay on following month.
Return goods to Belli trading $ 300 due to wrong
brand.
Paid 30% of amount owing to Mr. Pin Jan Man by
cheque.

Based on the above transactions, show the effect on assets, liabilities

and Owners equity as in the table below.
[15]

ASSETS

Liabilities

Owners

equity
Date

Bank

Example

+ $
22,000

+ Inventory

+ Office
Equipment

= Accounts
Payable/loan

+ Owners
equity
+ $
22,000