Basic Accounting (Assets, Liabilities & Capital)

Past Papers

Past Papers
Note: The solution of these past papers explained in the related video. Further,
questions have been taken from the previous course code 7110 now 2020
onwards the course code would be 7707.
These past papers cover the topic “Basic Accounting-Assets, Liabilities &
Capital”.

May / June 2000 7110/01

Question #26:
A company has capital of £24,400. Its fixed assets are £16,100 & its current
liabilities are £4,500. There are no long-term liabilities. What is the amount of its
current assets?
A. £8,300
B. £11,600
C. £12,800
D. £28,900

May / June 2002/7110/01

Question #22:
X pays £20,000 for the purchase of a business. The purchase price includes
equipment worth £ 9,000 & stock valued at £ 4,000. X deposits £ 2,000 of his own
money into the business bank account. What is X’s capital?
A. £ 13,000
B. £ 15,000
C. £ 20,000
D. £ 22,000

May / June 2004 /7110 /01

Question #34
Peter is a trader. His assets and liabilities on 31 December 2003 were

$
machinery 5 000
bank overdraft 4 000
unpaid accountant’s 250
bill
motor car 7 000

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 Basic Accounting (Assets, Liabilities & Capital)
Past Papers

What was his capital account balance?

A $7,750 B $8,000 C $8,250 D $12,000

October / November 2004 /7110 /01

Question #25
How is owner’s capital calculated?
A. fixed assets + current assets – current liabilities – long term loans
B. fixed assets + current assets – current liabilities + long term loans
C. fixed assets – current assets + current liabilities – long term loans
D. fixed assets – current assets + current liabilities + long term loans

October / November 2004 /7110 /01

Question #27
Which is a Current Liability?
A. Long term loan
B. Owner’s capital
C. Trade Creditors
D. Trade Debtors
May / June 2005 /7110 /01
Question #27
A trader has a capital of $24,400. His fixed assets are $16,100 and his current
liabilities are $4,500. There are no long-term liabilities.

What is the amount of his current assets?

A $8,300 B $11,600 C $12,800 D $28,900
October / November 2005 /7110 /01
Question #26
Which is a fixed asset of an engineering company?
A Factory premises B Long term loan C Trade debtors D Stock
October / November 2005 /7110 /01
Question #31
How is prepaid insurance at the end of the financial year shown in?

A Current asset B Current liability C Fixed asset D Long-term liability

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