
The following account balances are from the accounting records of SA Dealers: 
 
**R**

Buildings at cost

100 000

Equipment at cost

25 000

Inventory

18 000

Income received in advance

5 700

Trade payables

12 000

Short-term loan

20 000

Long-term loan

80 000

Prepaid expenses

6 000

Accrued expenses

5 400
 
What is the amount for total assets in the accounting records of SA Dealers?

Select one:

a. 

R154 700

b. 

R155 000

c. 

R154 100

d. 

R149 000

To calculate the total assets, we need to sum up all the asset items listed. The assets in the accounting records of SA Dealers include:

1. **Buildings at cost** = R100 000
2. **Equipment at cost** = R25 000
3. **Inventory** = R18 000
4. **Prepaid expenses** = R6 000

These are the asset items. Other items like "Income received in advance," "Trade payables," "Short-term loan," "Long-term loan," and "Accrued expenses" are liabilities, not assets, and won't be included in the asset calculation.

Now, let's sum up the assets:

\[
\text{Total assets} = 100\,000 + 25\,000 + 18\,000 + 6\,000 = R149\,000
\]

The correct answer is:

**d. R149 000**

Would you like any additional details or explanations? Here are five related questions to explore:

1. How do you distinguish between assets and liabilities in accounting?
2. What are current assets vs. long-term assets?
3. How is prepaid expense treated in accounting?
4. Why are liabilities excluded from total asset calculations?
5. How does depreciation affect the value of assets?

**Tip:** Always ensure you categorize items correctly as assets or liabilities when calculating totals.

The following account balances are from the accounting records of SA Dealers:

Buildings at cost: R100 000
Equipment at cost: R25 000
Inventory: R18 000
Income received in advance: R5 700
Trade payables: R12 000
Short-term loan: R20 000
Long-term loan: R80 000
Prepaid expenses: R6 000
Accrued expenses: R5 400

What is the amount for total assets in the accounting records of SA Dealers?

Select one:

a. R154 700
b. R155 000
c. R154 100
d. R149 000

Learn how to calculate the total assets from the accounting records of SA Dealers. This problem involves summing asset items such as buildings, equipment, inventory, and prepaid expenses. Suitable for students in Grades 10-12, this example also differentiates between assets and liabilities in accounting.

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