Tutorial Accounting Equation and Classification

Question 1
Calculate the value for the missing items below:

ASSET (RM) EXPENSES(RM) LIABILITIES(RM) CAPITAL(RM) REVENUES(RM)

1 67,500 85,700 50,500 53,700 ?
2 ? 7,000 8,000 21,000 70,000
3 112,000 85,000 ? 171,000 25,800
4 7,900 ? 3,200 2,750 4,200
5 32,500 6,600 7,200 ? 5,700
6

Question 2
State the effects using the format given below:

Transaction Effect
1 Purchased a motor vehicles and paid by cheque Increased asset – motor vehicles
Decrease asset – bank
2 Started a business with cash
3 Motor van repairs being paid by cash
4 Paid RM500 cash to creditor
5 Received commission revenue by cheque
6 Bought machinery and paid by cash

Question 3

The Flowerpots Enterprise, a nursery business involved in the buying and selling fertilizer and
gardening supplies has the following account balances as at 31 January 2010:
RM RM
Fertilizer 20,000 Cash at bank 5,000
Adika (creditor) 3,000 Freehold land 100,000
Cash in hand 1,000 Ashika (creditor) 2,500
Motor vehicle 21,000 Gardening supplies 20,000
Net profit for the year 10,000 Opening capital 32,000
Investment in ASB 5,000 Darwisy (debtor) 500
Drawing 2,000 Mortgage loan ???

Prepare a Statement of Financial Position of the business as at 31 January 2010 and you are required to
group the sub-item of the same group under the respective category.

Question 4

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The following are business transactions of Meriah Trading for the month of July 2010. Indicate the effects
on assets, expenses, liabilities, capital and revenues and the respective journal entry for each transaction
as shown in the examples below.

i. Started business with cash and office building

ii. Paid for electricity expense with cash
No Transactions Effect upon

Assets Expenses Liabilities Capital Revenue

Bought machinery with (+)Machinery
eg
cash ( -) Cash
Purchase paper on (+) paper (+)
eg
credit expenses Creditor
iii. Owner brought in a motor car for office use
iv. Purchase of goods, partially paid by cash and remaining on credit
v. Receive cheque for bank loan applied to finance the business
vi. Paid monthly bank loan by cheque

QUESTION 5
CLASSIFY ALL THE ITEMS INTO NON CURRENT ASSET,CURRENT ASSETS,NON CURRENT LIABILITIES,
CURRENT LIABILITIES,OWNERS EQUITY, EXPENSES AND REVENUE.

Property, plant and equipment Office equipment

Accounts Receivables Computers
Delivery expenses Inventories
Furniture & Fittings Land
Commission received Cash in hand
Cash at bank Fixtures & Fitting
Premises Interest received
Motor Vehicles Building
Depreciation Short term loan
Dividend received Rent received
Drawings Wages and salary
Insurance Mortgage on Loan
Sales Long Term Loan
Discount received Bank Overdraf
Advertising Capital
Accounts Payable Purchases
Return Outward Return Inwards
Travelling expenses Repair and maintenance
General expenses Printing and stationery
Utilities Discount Allowed
Postage Sundry expenses

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