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Tutorial Chapter 3 Accounting Equation - Q

This document contains sample accounting questions and transactions to practice the accounting equation and classification of business transactions. It provides examples of how different common business transactions would affect the accounting equation elements of assets, liabilities, owner's equity, revenues and expenses. Several transactions are listed with their impact stated such as starting a business with cash increases assets and owner's equity. This helps explain the basic framework of tracking the dual aspect of business financial activities.

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Farah Waheedah
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© © All Rights Reserved
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128 views

Tutorial Chapter 3 Accounting Equation - Q

This document contains sample accounting questions and transactions to practice the accounting equation and classification of business transactions. It provides examples of how different common business transactions would affect the accounting equation elements of assets, liabilities, owner's equity, revenues and expenses. Several transactions are listed with their impact stated such as starting a business with cash increases assets and owner's equity. This helps explain the basic framework of tracking the dual aspect of business financial activities.

Uploaded by

Farah Waheedah
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FARAH WAHEEDAH BINTI AZMAN 2020846068

TUTORIAL CHAPTER 3 ACCOUNTING EQUATION & CLASSIFICATION

ACCOUNTING CLASSIFICATION QUESTION 1

State whether the following are non-current asset (tangible, intangible or investment), current
asset, owner’s equity, non- current liabilities, revenue, or expenses.

1. Premises (tangible non-current assets)


2. Long term loan (non-current liabilities)
3. Insurance (expenses)
4. Dividend received (revenue)
5. Inventory (current assets)
6. Capital (owner equity)
7. Bank overdraft (current liabilities)
8. Cash (current assets)
9. Motor vehicles (tangible non-current assets)
10. Account receivable (current assets)
11. Account payable (current liabilities)
12. Fixtures and fittings (tangible non-current assets)
13. Machineries (tangible non-current assets)
14. Goodwill (intangible non-current assets)
15. Stationeries (expenses)
16. Fixed deposit (tangible non-current assets)
17. Salary (expenses)
18. Rent received (revenue)
19. Utilities (expenses)
20. Investment (non-current assets)

ACCOUNTING EQUATION QUESTION 1

State the effects of business transaction upon Assets, Liabilities and Owner’s Equity:
TRANSACTIONS EFFECTS
a. Started business with cash in the bank account INCREASE IN ASSET (cash)
INCREASE IN OWNER’S
EQUITY (capital)
b. Borrowed money from CIMB Bank INCREASE ASSETS
INCREASE LIABILITIES
c. Bought delivery van for office use by cheque INCREASE ASSETS
DECREASE ASSETS
d. Transferred cash from cash account to bank account DECREASE ASSETS
INCREASE ASSETS
e. The owner bought in personal furniture for office use INCREASE ASSETS
INCREASE OWNER EQUITY
f. The owner took cash from business for personal use DECREASE ASSETS
DECREASE OWNER
EQUITY
QUESTION 2

State the effects of business transaction upon Assets, Liabilities, Owner’s Equity, Revenue
and Expenses.
TRANSACTIONS EFFECTS
a. Purchased building financed by a loan from Maju INCREASE ASSETS
Bank INCREASE LIABILITIES

b. Received Commission on sales by cheque INCREASE REVENUE


DECREASE ASSETS
c. Paid utility expenses by cash INCREASE EXPENSES
DECREASE ASSETS
d. Issued a receipt for cash sales INCREASE LIABILITIES
INCREASE ASSETS
e. Paid stationeries by cheque INCREASE ASSETS
DECREASE ASSETS

QUESTION 3
TRANSACTIONS EFFECTS
a. Started business with RM10,000 in the bank Increase in asset (bank)
Increase in OE (Capital)
b. Bought goods worth RM1,000 on credit from Amirul Sdn INCREASE IN
Bhd EXPENSES (bought
goods)
INCREASE IN
LIABILITIES (credit)

c. Bought goods from Ali and paid by cheque RM500 INCREASE IN


EXPENSES (bought
goods)
DECREASE IN ASSETS
(bank)
d. Purchase a van worth RM15,000 using a loan from BMF INCREASE IN ASSETS
Finance (purchase van)
INCREASE IN
LIABILITIES (loan)

e. Sold goods worth RM2,000 to Hassan on credit INCREASE IN ASSETS


(sold goods)
INCREASE IN REVENUE
(credit)

f. Made a RM250 cash sale to Mutu INCREASE IN REVENUE


(sale)
INCREASE IN ASSETS
(cash)
g. Mutu returned goods and received RM20 cash refund INCREASE IN REVENUE
(return outward)
DECREASE IN
EXPENSES (cash refund)
h. The owner took RM100 worth of goods for his own use DECRESE IN EXPENSES
(took goods)
DECREASE IN OWNER
EQUITY (own use)
i. The owner took RM200 cash for his own use INCREASE IN ASSETS
(cash)
DECREASE IN OWNER
EQUITY (drawing)
j. Returned goods worth RM100 to Amirul Sdn Bhd DECREASE IN
EXPENSES (return
outward)
DECREASE IN
LIABILITIES (AP)
k. Paid amount due RM900 by cheque to Amirul Sdn Bhd DECREASE IN LIABILITY
(AP)
DECREASE IN ASSETS
(bank)
l. Owner brought in his personal furniture worth RM1,200 for INCREASE IN ASSETS
office use. (office use)
INCREASE IN OWNER
EQUITY (personal
furniture)

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