9609 · 10.1.2
Practice and worked examples for 9609 Statement of financial position. Short previews only — attempt the full question in MarkScheme against the official scheme.
Total assets $500,000; current liabilities $80,000; non-current liabilities $150,000.
Calculate equity and working capital, assuming current assets are $200,000.
1. Calculate Equity Equity = Total Assets − Total Liabilities Equity = $500,000 − ($80,000 + $150,000) Equity = $500,000 - $230,000 = $270,000
2. Calculate Working Capital Working Capital = Current Assets − Current Liabilities Working Capital = $200,000 − $80,000 = $120,000
A limited company provides the following financial data as at 31 December 2023:
Calculate: (a) Total Assets (b) Total Equity (c) Current Liabilities
Step 1: Calculate Current Assets Current Assets = Inventory + Trade receivables + Cash at bank = $60,000 + $45,000 + $15,000 = $120,000
Step 2: Calculate Total Assets (a) Total Assets = Non-current assets + Current Assets = $350,000 + $120,000 = $470,000
Step 3: Calculate Total Equity (b) Total Equity = Share capital + Retained earnings = $200,000 + $125,000 = $325,000
Step 4: Use the Accounting Equation to find Total Liabilities Assets = Liabilities + Equity $470,000 = Total Liabilities + $325,000 Total Liabilities = $470,000 - $325,000 = $145,000
Step 5: Calculate Current Liabilities (c) Current Liabilities = Total Liabilities - Non-current liabilities = $145,000 - $90,000 = $55,000
Check: The statement balances as Total Assets ($470,000) = Total Liabilities ($145,000) + Total Equity ($325,000).