2020 BGSS 3N POA EOY P1 Q1

2020 BGSS 3N POA EOY P1 Q1

1 Natasha is a sole trader selling display ornaments.

REQUIRED

a. Explain the following terms:

[2]

i. Assets

ii. Liabilities

b. Name two stakeholders of a business.

[2]

c. Complete the following table by indicating if the following accounts are current assets, non-current assets, current liabilities and non-current liabilities with a tick (✓). The first account has been completed as an example.

[3]

Account

Non-current Assets

Current  Assets

Non-current Liabilities

Current Liabilities

E.g. Cash at bank

 

  

Fixtures & fittings

    

Bank loan (entire loan repayable in 2025)

    

Interest income receivable

    

During the year, Natasha made the following transactions.

2020

 

March 10

Natasha borrowed a loan of $20 000 from Big Bank.

June 15

Natasha withdrew inventory, $200, as a gift for her friend. 

REQUIRED

d. Prepare the journal entries for the above transactions. Narrations are not required.

[4]

[TOTAL 11]

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(i) Assets 

Resources that a business owns or controls that are expected to provide future benefits.

 

(ii) Liabilites

Obligations owed by a business to others that are expected to be settled in the future.

Any two – Owner, manager, bank, government, suppliers, customers etc

 

Account

Non-current Assets

Current 

Assets

Non-current

Liabilities

Current Liabilities

Fixtures & fittings

   

Bank loan (entire loan repayable in 2025)

  

 

Interest income receivable

 

  

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