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Business Studies Financial Calculations Guide

This document provides a tutorial on business accounting concepts. It includes examples of completing accounting tables for assets, liabilities, and capital. Students are asked to classify common business items as assets or liabilities and calculate capital for several hypothetical new business owners based on initial purchases, loans, and cash on hand. The tutorial concludes with exercises to update a statement of financial position based on sample business transactions.

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0% found this document useful (0 votes)
54 views4 pages

Business Studies Financial Calculations Guide

This document provides a tutorial on business accounting concepts. It includes examples of completing accounting tables for assets, liabilities, and capital. Students are asked to classify common business items as assets or liabilities and calculate capital for several hypothetical new business owners based on initial purchases, loans, and cash on hand. The tutorial concludes with exercises to update a statement of financial position based on sample business transactions.

Uploaded by

Red Hong
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Certificate in Business Studies

Tutorial 1
Name: Tan Jun Hong Section: 8D1

1. Complete the gaps in the following tables:

Assets Liabilities Capital


RM RM RM
a) 20,000 3,400 16600
b) 23,000 8,800 14200
c) 19,200 16000 3,200
d) 8,100 1600 6,500
e) 25200 7,900 17,300
f) 70400 18,500 51,900
g) 55,000 16,900 38100
h) 51600 17,200 34,400
i) 36,100 7600 28,500
j) 119,500 15,400 104100
k) 88,000 26000 62,000
l) 159000 49,000 110,000

2. Classify the following items into liabilities and assets:


Bank Overdraft Premises Accounts receivable Loan from Mr Jones Fittings & Furniture
Equipment Accounts payable Cash in hand Machinery Computers
Motor vehicles Inventory Bank loan Loan to Mr Wood Mortgage

Assets Liabilities

1 Accounts receivable Accounts payable


Cash in hand Bank loan
2
Computers Loan from Mr Jones
3
Equipment Mortgage
4
Fittings & Furniture Bank Overdraft
5
Machinery
6
Inventory
7
Loan to Mr Wood
8
Premises
9
Motor vehicles
10

11

12

13

14

15
3. Mr Paul is setting up a new business. Before actually selling anything, he bought a van for RM13,000,
a transportable market stall for RM1,050, a computer for RM450, and an inventory of goods for RM8,000.
He did not pay in full of his inventory of goods and still owes RM3,000 for them. He borrowed RM10,000
from Mr Basil. After the events just described, and before trading starts, he has RM1,400 cash in hand
and RM4,700 in the bank. Calculate the amount of his capital.

Assets=RM13000+RM1050+RM450+RM8000+RM1400+RM4700=RM28600
Liabilities=RM3000+RM1000=RM13000
Capital=RM28600-RM1300=RM15600

4. Mr Flint is starting a business. Before actually starting to sell anything, he bought fixtures for RM1,200,
a van for RM6,000 and an inventory of goods for RM2,800. Although he has paid in full for the fixtures
and van, he still owes RM1,600 for some of the iventory. Mr Rub lent him RM2,500. After the above,
Mr Flint has RM200 in the business bank account and RM175 cash in hand. You are required to calculate
his capital.
Assets=RM1200+RM6000+RM280 0+RM200+RM175=RM10375
Liabilities=RM3000+RM1000=RM1 3000
Capital=RM10375-RM13000=RM1 5600

5. Draw up Mr Marriott's statement of financial position from the following information as at


31 December 2017.
RM RM
Capital 20,700 Equipment 7,900
Accounts receivable 800 Inventory 5,700
Car 8,300 Cash at bank 1,600
Accounts payable 3,600
Mr Marriott
Statement of financial position as at 31 December 2017
6. Draw up Ms Kelly's statement of financial position as at 31 December 2017 from the following:
RM RM
Capital 10,200 Inventory 3,600
Equipment 3,400 Accounts receivable 4,500
Accounts payable 4,100 Cash at bank 2,800

7. Complete the columns to show the effects of the following transactions:


Effect upon
Assets Liabilities Capital
a) We pay a creditor RM310 by cheque. Bank decrease Account payable
decrease
b) Bought fixtures RM175 paying in cash.

c) Bought goods on credit RM630.

d) The owner put in RM1,200 cash into


the business.

e) Mr Walker lends the business RM2,500


in cash.

f) A debtor pays us RM50 in cash.

g) Repay a loan to Mr Tee RM10,000 by


cheque

8. Mr Park has the following items in his statement of financial position on 30 April 2017:
Capital RM31,700; Accounts payable RM7,400; Fixtures RM9,600; Car RM12,300; Inventory RM8,600;
Accounts receivable RM4,100; Cash at bank RM1,600; Cash in hand RM2,900.
During the first week of May 2017 --

a) He bought extra inventory for RM1,000 on credit.


b) One of the debtors paid her RM450 by cheque.
c) He bought a computer by cheque RM610.

You are asked to draw up a statement of financial position as at 7 May 2017 after the above transactions
have been completed.

End of tutorial 1

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