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]
(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 | Non-current | Current Liabilities |
Fixtures & fittings | ✓ | |||
Bank loan (entire loan repayable in 2025) | ✓ | |||
Interest income receivable | ✓ |