Answer to Question #210540 in Accounting for Olyver Aseri

Question

 1.On January 1st 2013 Patels financial position was as follows Kshs 150,000 Motor Vehicle, Kshs 50,000 furniture, Kshs 30,000 Stock, Kshs 35,000 Bank, Kshs 30, 000 debtors includes Ann 30, 000, John ksh 4500

Creditors include: Robber Kshs 9,000 David Kshs 3500.

Required

From the above information determine Patels total assets, his liabilities and capital as at 1st January 2013.

Answer 1

Patels total assets, his liabilities and capital as at 1st January 2013 are as follows:

Total assets include:

Motor vehicle - kshs 150,000

Furniture - kshs 50,000

Stock. - kshs 30,000

Bank. - kshs 35,000

Debtors. - Ann,kshs 30,000

-John, kshs 4500

on addition on all total assets = kshs 299,500

Total liabilities include creditors

Robber - kshs 9000

David - kshs 3500

On addition of all total creditors = kshs 12,500

To get total capital, we subtract total liabilities from total assets

=299,500 - 12,500 =287,000

Total capital = kshs 287,000