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Question 1CIRCULAR PIZZAS LTDOn the next page is a draft balance sheet which Circular’s accountant is planning to fill in. Where would she put the following items?a)A bank overdraft, repayable on demandb)Twelve tonnes of pizza doughc)A bank loan, repayable in five yearsd)Invoices from a supplier of garlic and tomato pastee)Taxes for the current year payable in nine months’ timef)An oven and two delivery bikesg)A bill (unpaid) for pizzas delivered to a Christmas partyh)An order to purchase plant and equipmentQuestion 1: Balance SheetCURRENT ASSETSCashAccounts ReceivablegInventorybLONG-TERM ASSETSPlant and MachineryfCURRENT LIABILITIESBank OverdraftaAccounts PayablebTax PayableeDividends PayableOther PayableLONG TERM LIABILITIESBank LoancNET ASSETSSHAREHOLDERS’ EQUITY1
Common StockRetained EarningsTOTAL LIABILITIES AND EQUITY