ACCOUNTING EQUATION

Show the effect upon assets, liabilities, capital, revenues and expenses for each of the following transactions.

a. Start a business with RM10,000 in the bank

• a. Asset (Bank) increase RM10,000

• b. Asset (Business) increase RM10,000

• c. Capital (Owner Equity) increase RM10,000

• d. Liability (Bank) increase RM10,000

Show the effect upon assets, liabilities, capital, revenues and expenses for each of the following transactions.

b. Bought goods on credit from Amirul Sdn.Bhd RM1,000

• Expenses (Purchase) increase RM1,000

• Asset (Debtor) increase RM1,000

• Liability (Creditor) increase RM1,000

• Asset (Debtor) decrease RM1,000

Show the effect upon assets, liabilities, capital, revenues and expenses for each of the following transactions.

c. Bought goods from Ali paying by cheque RM500

• Asset (Debtor) increase RM500

• Asset (Bank) decrease RM500

• Liability (Payable Ali) increase RM500

• Expenses (Purchase) increase RM500

Show the effect upon assets, liabilities, capital, revenues, and expenses for each of the following transactions.

d. Purchase motor van using loan from BMF Finance RM15,000

• Expenses (Purchase) increase RM15,000

• Asset (Motor Van) increase RM15,000

• Asset (Bank) decrease RM15000

• Liability (Loan BMF) increase RM15000

Show the effect upon assets, liabilities, capital, revenues and expenses for each of the following transactions.

e. Sold goods on credit to Hasan RM2,000

• Liability (Payable Hasan) increase RM2,000

• Asset (Receivable Hasan) increase RM2,000

• Revenue (Sale) increase RM2,000

• Revenue (Sale) decrease RM2,000

Show the effect upon assets, liabilities, capital, revenues and expenses for each of the following transactions.

f. Cash sales to Mutu RM250

• Asset (Receivable Mutu) increase RM250

• Asset (Cash) decrease RM250

• Revenue (Sale) increase RM250

• Asset (Cash) increase RM250

Show the effect upon assets, liabilities, capital, revenues, and expenses for each of the following transactions.

g. Mutu returned goods and received a cash refund of RM20

• Asset (Cash) increase RM20

• Asset (Receivable Mutu) decrease RM20

• Asset (Cash) decrease RM20

• Expense (Sale Return ) increase RM20

Show the effect upon assets, liabilities, capital, revenues, and expenses for each of the following transactions.

h. The owner took goods for his own use RM100

• Expense (Purchase) decrease RM100

• Drawing increase RM100

• Asset (Cash) decrease RM100

• Drawing decrease RM100

Show the effect upon assets, liabilities, capital, revenues, and expenses for each of the following transactions.

i. The owner took cash for his friend RM200

• Asset (Cash) increase RM200

• Capital (Owner equity) increase RM200

• Asset (Cash) decrease RM200

• Drawing increase RM200

Show the effect upon assets, liabilities, capital, revenues, and expenses for each of the following transactions.

j. Returned goods to Amirul Sdn.Bhd RM100

• Revenues (Purchase Return) increase RM100

• Asset (Cash) increase RM100

• Revenues (Sale) increase RM100

• Liability (Payable Amirul) decrease RM100