YPC INTERNATIONAL COLLEGE

CBT31073 Introduction to Accounting

Group Assignment
Intake: CBT2241

Prepared By:
NG KING LOK CBT2204042
SHELDON LIM YU XIN CBT2204044

Lecturer: Ms. Mariam

Questions:
1. State whether the items below are asset, liability, equity, income, or
expenses. (10 marks)

a) Loan from JJ Shop l) Mortgage loan

b) Cash in hand m) Repair and maintenance
c) Other receivable n) Bad debt
d) Property o) Laptop
e) Marketing expenses p) Accrued rental expenses
f) Sales q) Prepaid insurance expenses
g) Payables r) Bank overdraft
h) Interest received s) Short-term investments
i) Office equipment t) Fixed Deposits
j) Closing inventory
k) Capital

Answer:

a) Loan from JJ Shop – liability

b) Cash in hand – asset
c) Other receivable – asset
d) Property – asset
e) Marketing expenses – expenses
f) Sales – income
g) Payables – liability
h) Interest received – income
i) Office equipment – asset
j) Closing inventory – asset
k) Capital – equity
l) Mortgage loan – liability
m) Repair and maintenance – expenses
n) Bad debt – expenses
o) Laptop – asset
p) Accrued rental expenses – asset
q) Prepaid insurance expenses – asset
r) Bank overdraft – liability
s) Short-term investments – asset
t) Fixed Deposits – asset
2. Tick the correct answer. To increase the balance in the following accounts,
would you debit or credit the account? (20 marks)

Accounts Debit Credit

RM RM
a) Accounts Receivable /
b) Bank /
c) Motor Vehicles /
d) Interest payable /
e) Long-term loan /
f) Capital /
g) Advertising expense /
h) Prepaid salary /
i) Sales /
j) Drawings /
k) Machinery /
l) Unearned rental income /
m) Miscellaneous expenses /
n) Sales return /
o) Bank overdraft /
p) Bad debt /
q) Depreciation – Machinery /
r) Commission received /
s) Wages expense /
t) Discount allowed /
3. Zam Zam Trading is a business selling souvenirs. The following transactions
took place in the month of September 2020.

Dates Transactions
2020
Sep 1 Owner invested RM80,000 cash into the business bank account
3 Purchased a machine from Go-Tractor costing RM70,000 paid by
cheque
6 Received invoices RM7,800 from Wong for goods purchased
8 Sold goods on credit to Ravi for RM6,100
20 Received a cheque from Supplier AA for commission received of
RM300
23 Paid RM150 by cheque to Takaful M for insurance expense
26 Received a cheque for cash sales amounting to RM850
29 The owner withdrew goods worth RM700 and bank account
RM8,000 for personal use.
30 Purchased stationery of RM35 by cash.

Required:
State which accounts should be debited and which accounts to be credited for
each transaction. (20 marks)

Answer:
Date Account Debit (RM) Credit (RM)
2020
Sep 1 Bank 80,000
Cash 80,000
3 Machinery 70,000
Bank 70,000
6 Purchase 7,800
Invoice 7,800
Received
8 Trade Receivable- 6,100
Ravi 6,100
Sales
20 Bank 300
Commission 300
Received
23 Insurance Expenses 150
Bank 150
26 Bank 850
Sales 850
29 Drawings 8,000
Bank 8,000
30 Stationery 35
Purchases 35