Question

1) The following information relates to two different sole traders at the same point in time. Item Sole trader Sole trader $33 000 45 000 $6 000 12 000 15 600 30 000 9 000 Cash at bank Accounts receivable Supplies Equipment Accounts payable Capital (opening balance) Additional capital contribution Profit Drawings Capital (closing balance) 69 000 57 000 90 000 15 000 36 000 9000 15 000 10 000 54 600 i) Fill in the missing number(s) for each of the situations given above. (3 marks)

Answer 1

Sole Trader 1

Opening Capital + Additional Capital + Profit - Drawing = Closing Capital

Opening Capital + 0 +15000 -10000 = 54600

Opening Capital + 5000 = 54600

Opening Capital =54600-5000

Opening Capital=49600

Balance Sheet will be

Liabilities			Asset
Accounts Payable		9000	Cash	6000
Opening Balance	49600		Accounts Receivable	12000
Additional	0		Supplies	15600
Profit	15000		Equipment	30000
Drawings	-10000	54600
		63600		63600

2 Sole Trader 2

Opening Capital + Additional Capital + Profit - Drawing = Closing Capital

90000 + 15000 + 36000 - 9000 =132000

Calculation of Supplies

Total liabilities = Assets + Supplies

Accounts Payable + Closing Capital = Cash + Accounts Receivable + Supplies +Equipment

57000 + 132000= 33000+45000+Supplies +69000

189000 = 147000 + Supplies

189000 - 147000= Supplies

42000 = Supplies

Balance Sheet will be

Liabilities			Asset
Accounts Payable		57000	Cash	33000
Opening Balance	90000		Accounts Receivable	45000
Additional	15000		Supplies	42000
Profit	36000		Equipment	69000
Drawings	-9000	132000
		189000		189000