Question

PLEASE TURN OVER Question 5 Total Marks 20 J Massa is setting up a new business. Before actually selling anything, he bought a van for R4,500, a market stall for R2,000 and a stock of goods for R1,500. He did not pay in full for his stock of goods and still owes R1,000 in respect of them. He borrowed R5,000 from C Fox. After the events just described, and before trading starts, he has R400 cash in hand and R1, 100 cash at bank. Calculate the amount of his capital. (10 Marks) Draw up Emmanuel's balance sheet from the following information as at 31 December 2008 Capital Debtors Van Creditors Fixtures Stock of goods Cash at bank (10 Marks) 7,200 1,200 3,800 1,600 1,800 4,200 300

Answer 1

Balance Sheet of T. Massa Liabities unt Capital Introduced Balolo 2000 Cuechent liabilities Stock Dues c. For Amount 4500 2000 1000 1500 Assets Van Market Stall Stock Cash in Hand he at Bank L400 + 1100 + 5000 - 4500 - 2000] 5000 NIL 18000 8000 Balance Sheet of Emmanuel's 7200 1200 2500 Capital Profit for the year [Balancing figure] Creditors Debtors Van Fizetures stock of Goods Cash at Bank 3800 1800 4200 300 1600 11,300 11,300