Accounting for Decision Making
March 27, 2021
Essayheroes
Question 1 – Calculate the missing figures. (1.5 marks)
Assets
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Liabilities
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Owner’s Equity
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320,000
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(a)
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182,000
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(b)
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70,000
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59,000
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189,000
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94,000
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(c)
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Question 2 – Analysing business transactions. (15 marks)
The following table contains several business transactions for the current month for a Sole Trader.
Required: Identify the names of which accounts are affected, how they are affected (+/-, increase or decrease), and the element of the financial statement of these accounts (A, L, OE, R, E).
Business Transactions
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The owner contributed $40,000 cash to commence the business.
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Purchased a motor vehicle for $12,000 on credit.
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Paid $1,600 cash for rent for the current month.
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Borrowed $20,000 from the bank to be repaid in 6 years.
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Cash received for services provided this month $8,400.
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Account name
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+/- (Increase/
decrease)
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Element
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Account name
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+/- (Increase/
decrease)
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Element
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DETAILED ASSIGNMENT
202103260224481102afe_assessable_homework_2_t1_2021_1
