CHAPTER 5 Balance sheet 205EXERCISES
BASIC | MODERATE | CHALLENGING
5.16 LO6
Advantage Tennis Coaching, a business owned by sole trader Nicholas Cash, had the following
assets and liabilities as at the financial years ended 30 June 2016 and 30 June 2017 as shown.
30 June 2017 30 June 2016
ASSETS
Cash at bank
Accounts receivable
Prepaid insurance
Equipment (net)
Vehicle (net)$ 15 000
24 000
5 000
7 000
70 000$6 000
15 000
2 500
6 000
80 000
LIABILITIES
Accounts payable
Accrued expenses
Bank loan$ 26 000
5 000
35 000$ 17 500
8 000
57 500Required
a. What is the equity as at the end of the two financial years?
b. If Nicholas contributed an extra $15 000 capital during the financial year ending 30 June 2017
and made no drawings, determine his profit (or loss) for the year, assuming the above balances
remain the same.
c. If Nicholas had contributed an extra $20 000 and withdrew $15 000 during the year ending
30 June 2017, determine his profit (or loss) for the year, assuming the above balances remain
the same.5.17 LO8, 9
From the following account balances of Rosie Pty Ltd as at 30 September 2016, prepare a balance
sheet in both the T-format and the narrative classified format.
Cash at bank
Accounts receivable (net)
Inventory
Land
Fixtures and fittings
Loan payable
Tax payable
Share capital
Retained earnings$ 75 000
37 500
30 000
37 500
9 000
7 500
7 500
30 000
144 0005.18 LO8, 9
From the following account balances of Cloudy as at 30 June 2016, prepare a balance sheet in both
the T-format and the narrative classified format.
Cash at bank
Accounts receivable (net)
Inventory
Plant and equipment
Goodwill
Accounts payable
Borrowings
Provisions
Share capital
Retained earnings$ 2 000
24 500
32 000
174 500
250 000
17 500
92 000
20 000
220 000
133 500