Balance Sheet

Practice
Workbook

Name: _______________________________________________
1. Match up these definitions

Terms Definition
Owners Equity
Current Assets
Non-Current Assets
Current Liabilities
Non-Current Liabilities
Proprietor
Accounting Equation
( ) A - Owner of a business
( ) B - Amount owed by the business that
must be paid in the long term
( ) C - Amount that must be paid within 12
months
( ) D - Amount owed to the owner by the
business
( ) E - The relationship between the assets
and the liabilities of the business
( ) F - Item of value that will be of use to
the business in the short term
( ) G - Item of value that be of use to the
business in the long term

2 – Complete the table below by calculating the missing amounts.

Current Non-Current Current Non-Current Owner’s

Assets Assets Liabilities Liabilities Equity

$15,000 $27,000 $9,000 $20,000

$13,000 $48,000 $8,000 $16,000
$52,000 $4,000 $9,000 $76,000
$19,782 $46,591 $12,988 $33,555
$31,500 $15,200 $27,800 $9,700

3 – John’s Kitchenware provides the following balances on 31 May 2018;

Display Equipment 7,000 GST Owing 1,440

Cash at Bank 4,500 Office Equipment 8,700
Loan due in April 2020 12,000 Stock of Supplies 4,300
Creditors 2,000 Debtors 1,200

A – Calculate Capital as at 31 May 2018

Calculation

Capital = A-L

Assets:

Liabilities:

Capital - $

B – Prepare a classified Balance Sheet for John’s Kitchenware as at 31 May 2018.

Current Assets $ $ Current Liabilities $ $

Non-Current Non-Current
Assets Liabilities

Owner’s Equity

Total Assets Total Equities

3 – As at 31 May 2018, the assets and liabilities for Sam’s Hair were as follows –
$
Stock of hair care products 42,000
Creditors 3,400
Loan – NAB (repayable $6,000 per annum) 30,000
Shop Fittings 22,000
Bank Overdraft 4,900
Debtors 8,600
Office Equipment 15,300

Current Assets $ $ Current Liabilities $ $

Non-Current Non-Current
Assets Liabilities

Owner’s Equity

Total Assets Total Equities

4 – Noel owns his own business – Noel’s Plumbing, the following list of assets and
liabilities has been provided as at 1 February 2018.

$
Creditors 8,500
Stock of Fittings 12,000
Wages Owing 400
Tools 12,000
Mortgage (due 2028) (repayable $8,000 per year) 80,000
Cash at Bank 3,000
Premises 90,000
Loan – NAB (Due December 2018) 20,000
Company Vans 30,000
Debtors 1,500
Owners Equity ?

Current Assets $ $ Current Liabilities $ $

Non-Current Non-Current
Assets Liabilities

Owner’s Equity

Total Assets Total Equities

5 – Robert owns and operates Rob’s CD Library, and has provided the following list of the
firm’s assets and equities as at 31 December 2016.

$
Wages Owing 1,200
Mortgage (repayable $500 per month) 80,000
Equipment 12,000
Debtors 1,500
Owing to Suppliers 4,500
Cash at Bank 1,000
Stock of CD’s 24,000
Premises 95,000
Owner’s Equity ?

Current Assets $ $ Current Liabilities $ $

Non-Current Non-Current
Assets Liabilities

Owner’s Equity

Total Assets Total Equities

6 - The Balance sheet was prepared by Colin Smith, for the business which he owned,
Smith’s Dancing Studios. State 5-10 Errors that colin has made in the preparation of the
balance sheet. Indicate why each one is an error.
 1.
1.
1.
1.
1.
1.
1.
1.
1.
1.
1.
1.
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2. ____________________________________________________________________________________________

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3. _____________________________________________________________________________________________

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4. _____________________________________________________________________________________________

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5. ____________________________________________________________________________________________

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6. ____________________________________________________________________________________________

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7. ____________________________________________________________________________________________

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8. ______________________________________________________________________________________________

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9. ______________________________________________________________________________________________

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 10. ______________________________________________________________________________________________

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7- Using the balance sheet for The Health and Fitness Centre, answer the following
questions.

a) What can we learn about this business from this balance sheet?

b) Would you invest in this business? Give examples from the balance sheet to
explain.

c) Provide one advantage of having more current assets over current liabilities.