Q1) State whether the following are Business  Assets or Liabilities (Enter A or L in response)
               
  a) A Shop owned by the business      
  b) Fixtures and Fittings        
  c) Computers        
  d) A loan from the bank        
  e) A loan from the business to a customer      
  f) An Account Payable        
  g) An Account Receivable        
  h) Inventory        
  i) Business Capital        
  j) Machinery        
  k) Vehicles          
  l) Bank Overdraft        
  m) Premises        
  n) Cash          
  o) Debtors          
  p) Creditors        
               
Q2) Using the accounting equation, fill in the missing numbers:    
               
      1) Assets 2) Liabilities 3) Capital    
    a) 12500 1800    
    b) 28000 4900    
    c) 16800 12500    
    d) 19600 16450    
    e) 6300 19200    
    f) 11650 39750    
               
Q3) Below are some typical transactions with the two accounts affected.    
               
  For each account, say whether it is an asset or a liability (answer "a" or "c").  
               
  Also, say whether the value of the asset has gone up or down in value as a result   
  (To anwer type "u" or d".)          
               
  1) The owner starts the business with £20,000 in cash:      
               
      Type (a/l) Effect (u/d)      
    Capital      
    Cash      
               
  2) £15,000 of the cash is placed in a Bank account      
               
               
    Cash      
    Bank      
               
  3) £2000 worth of Fixtures are bought on credit from "Office World"    
  ("Fixtures" means shelves/desks/chairs etc needed in the shop.)    
               
               
    Fixtures      
    Office World      
               
  4) Part Re-payment to "Office World, £1000 cash.      
               
               
    Cash      
    Office World      
               
  5) Bought goods on credit from Abe Books      
               
               
    Inventory      
    Abe Books      
               
  6) Bought a delivery van for £3000 paying by cheque      
               
               
    Van      
    Bank      
               
  7) The owner pays Abe Books £200 using his own money      
               
               
    Capital      
    Abe Books      
               
  8) The owner takes £50 from the business bank account for his own use.  
               
               
    Capital      
    Bank      
               
  9) We returned some faulty fixtures (bought on credit) to "Office World".  
               
               
    Fixtures      
    Office World      
               
  10) A customer buys books on credit.        
               
               
    Acc Receivable      
    Inventory