The following is a list of all the balances (in random order) in the ledgers of Vladimir
Popov at 1 June 2014:
| Name | Amount | Debit balance or Credit balance? |
| Receivable: J. Petrov | 650 | Debit |
| Rent and Rates | 6,400 | Debit |
| Machinery | 25,680 | Debit |
| Equity | ? | Credit |
| Wages | 18,630 | Debit |
| Purchases | 14,560 | Debit |
| Advertising | 1,500 | Debit |
| Payable: P. Pavlov | 960 | Credit |
| Accountancy fees | 350 | Debit |
| Sales | 32,510 | Credit |
| Bank | 5,000 | Debit |
| Payable: L. Grigorvic | 250 | Credit |
(a) What was the balance on Vladimir’s Equity account on 1 June 2014? (show your
workings)
(b) Rearrange all the balances (including the equity account balance) under each of
the following headings:
| Assets | Expenses | Liabilities | Equity | Income |
(c) Total the balances that appear under each of the five headings in part (b) above,
and then complete and prove the following formula:
Assets + Expenses = Liabilities + Equity + Income
