C С and liabilities
Savannah Jackson has decided to start a play school that she will run from
home. She has put R50 000 of her own money into the business and she has
borrowed R20 000 from the bank. She has come to ask you some questions
about how to get her business going.
1. What is the correct accounting term for the R50 000?
2. What is the correct accounting term for the R20 000?
3. How much money in total does Savannah have to start her business?
Make a list of eight possible assets Savannah would need to buy in order
to run her play school.
5. Take the list of assets that Savannah may need and investigate how
much these assets would cost her to buy.
6. In your opinion, do you think she has enough money to start her
business? Give two reasons for your answer.
7. Do you think it is a good idea to borrow money from the bank to start
a business? Give a reason for your answer.​