Worked Example No 1 On Balance Sheet Classifications

Question No 1:
List the amount of Total current assets from below listing:

Patents,trademark =$100,000
Accounts Receivable=$30,000
Inventory=$100,000
Investment in subsidiaries=$200,000
Property, plant and equipment=$600,000
Cash & Bank=$40,000
Total Current Assets= ?


Answer:
Total Current Assets=Accounts Receivable+Inventory+Cash & Bank=$170,000



Question No 2:

Insert the following to classify the Balance Sheet items:

Current Asset; Non Current Asset; Intangible asset
Current Liability; Non Current Liability, Equity

a ________ Trademarks
b ________ Retained earnings
c ________ Salaries payable
d ________ Income Tax payable
e ________ Accruals
f ________ Prepayments
g ________ 15 year mortage owned by the company
h ________ Accounts Payable
i ________ Petty Cash
j ________ Land
k ________ Sundry deposits like rent
l ________ Fixed Deposit with bank

Answer:
a Intangible asset
b Equity
c Current liability
d Current liability
e Current liability
f Current asset
g Non Current liability
h Current liability
i Current asset
j Non Current asset
k Current asset
l Current asset