Accounting Equation

Start business with RM100,000 cash in hand

• Cash increase RM100,000

• Cash decrease RM100,000

• Capital increase RM100,000

• Capital decrease RM100,000

Get a business loan from Maybank Islamic Bhd RM300,000

• Cash at Bank increase RM300,000

• Cash at Bank decrease RM300,000

• Loan from Maybank Islamic increase RM300,000

• Loan from Maybank Islamic decrease RM300,000

Bought a business premise of RM150,000 by cash at Bank

• Cash at Bank increase RM150,000

• Cash at Bank decrease RM150,000

• Premises increase RM150,000

• Premises decrease RM150,000

Bought office fixtures RM50,000 from Samson Bhd on credit

• Office fixtures increase RM50,000

• Samson Bhd increase RM50,000

• Cash decrease RM50,000

• Capital increase RM50,000

Bought goods RM3,000 on cash from Bijak Sdn Bhd

• Inventories increase RM3,000

• Inventories decrease RM3,000

• Cash decrease RM3,000

• Bijak Sdn Bhd increase RM3,000

Bought motor vehicle by loan from bank RM70,000

• Motor Vehicle increase RM70,000

• Motor Vehicle decrease RM70,000

• Cash at Bank decrease RM70,000

• Loan from Bank increase RM70,000

Sold goods on credit RM500 to Muaz Trading

• Cash increase RM500

• Inventories increase RM500

• Inventories decrease RM500

• Muaz Trading increase RM500

Pay loan from Maybank Islamic RM2,000 with cash in hand

• Loan from Maybank Islamic increase RM2,000

• Loan from Maybank Islamic decrease RM2,000

• Cash at Bank decrease RM2,000

• Cash in Hand decrease RM2,000

Owner brought a personal computer cost RM1,800 to be used by the business

• Cash increase RM1,800

• Computer increase RM1,800

• Capital increase RM1,800

• Capital decrease RM1,800

Sold an old office furniture for RM1,000 and received a cheque

• Cash at Bank increase RM1,000

• Cash at Bank decrease RM1,000

• Office furniture increase RM1,000

• Office furniture decrease RM1,000