Financial Accounting $1$

SECTION B: SHORT QUESTIONS

$(10$ ?MARKS$)$

ANSWER ALL THE QUESTIONS

QUESTION $1$

a$)$ ?Draft a four$-$column statement with the following headings:

Transaction number

Assets

Liabilities

Owner's equity

b$)$ ?Record each of the following transactions on the statement. Using a plus sign $(+)$ ?for an increase, a minus sign $(-)$ ?for a decrease, or a nil $(0)$ ?to indicate that the transaction has no influence, show the influence of each transaction on the assets, liabilities and owner's equity in these columns.

A general medical practitioner invests cash and equipment in a medical practice.

He treats a patient and receives his money immediately.

He buys additional equipment, for use in his practice, on credit.

He performs a medical check$-$up on a patient on account.

He pays for the equipment purchased in point number $3.$

$(5)$

QUESTION $2$

The Balance Sheet is divided into two sections. Name these sections and state what each section entails.

$(4)$

QUESTION $3$

$(1)$

Which statement shows how much profit an entity made?

$[10]$