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
Here is the Statement of Financial Position for Gakuru enterprise: Step 1: Classify the given items into assets, liabilities, and capital. Non-Current Assets: Buildings: 320,000 frw Furniture: 90,000 frw Current Assets: Stock of goods: 36,000 frw Debtors: 30,500 frw Cash at bank: 25,000 frw Current Liabilities: Creditors: 19,500 frw Bank Overdraft: 32,000 frw Capital: The amount 450,000 frw is listed without a label. We will calculate the capital using the accounting equation (Assets - Liabilities) to confirm this figure. Step 2: Calculate Total Assets. Total Non-Current Assets = 320,000 + 90,000 = 410,000 frw Total Current Assets = 36,000 + 30,500 + 25,000 = 91,500 frw Total Assets = Total Non-Current Assets + Total Current Assets = 410,000 + 91,500 = 501,500 frw Step 3: Calculate Total Liabilities. Total Liabilities = Creditors + Bank Overdraft = 19,500 + 32,000 = 51,500 frw Step 4: Calculate Capital. Capital = Total Assets - Total Liabilities Capital = 501,500 - 51,500 = 450,000 frw This confirms that the 450,000 frw mentioned in the list is indeed the capital. Step 5: Prepare the Statement of Financial Position (Balance Sheet). Gakuru Enterprise \\ Statement of Financial Position \\ As at 28 February 2021 |l|r| Assets & Amount (frw) \\ Non-Current Assets & \\ Buildings & 320,000 \\ Furniture & 90,000 \\ Total Non-Current Assets & 410,000 \\ Current Assets & \\ Stock of goods & 36,000 \\ Debtors & 30,500 \\ Cash at bank & 25,000 \\ Total Current Assets & 91,500 \\ TOTAL ASSETS & 501,500 \\ Equity and Liabilities & \\ Owner's Equity & \\ Capital & 450,000 \\ Current Liabilities & \\ Creditors & 19,500 \\ Bank Overdraft & 32,000 \\ Total Current Liabilities & 51,500 \\ TOTAL EQUITY AND LIABILITIES & 501,500 \\ The capital of Gakuru Enterprise as at 28 February 2021 is 450,000 frw. 3 done, 2 left today. You're making progress.