This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Question 26: Step 1: Analyze the items listed under Assets and Liabilities in the provided Balance Sheet. Assets: Cash at bank (K3000), BSP-Loan (K2000), Vehicle (K5000). Liabilities: Loan from JC (K1000). Step 2: Identify the nature of each item. Cash at bank is an asset. A Vehicle is an asset. A Loan from JC is a liability (money owed to an external party). A BSP-Loan is also money owed to an external party (the bank), making it a liability. Step 3: Determine which item is incorrectly classified. The "BSP-Loan" is listed under Assets, but it is a liability. Therefore, it is recorded incorrectly. The correct option is D. D) BSP-Loan Question 27: Step 1: Recall the accounting equation: Assets = Liabilities + Owner's Equity (Capital). Step 2: Correct the mistake identified in Question 26. The BSP-Loan of K2000 should be moved from Assets to Liabilities. Corrected Assets: Cash at bank = K3000 Vehicle = K5000 Total Corrected Assets = K3000 + K5000 = K8000 Corrected Liabilities: Loan from JC = K1000 BSP-Loan = K2000 Total Corrected Liabilities = K1000 + K2000 = K3000 Step 3: Calculate the owner's contribution (Capital) using the corrected figures. Capital = Total Corrected Assets - Total Corrected Liabilities Capital = K8000 - K3000 Capital = K5000 The correct option is A. A) K5000 Question 28: Interest received is money earned by the business, typically from investments or bank deposits. This inflow of money is considered income. The correct option is D. D) revenue Last free one today — make it count tomorrow, or type /upgrade for unlimited.