ABFA1153 FINANCIAL ACCOUNTING 1 1 June 2021

Tutorial 1 – The Accounting Equation

Section 4: Extra exercise questions (for students’ own practice)
Question 2

Capital injection was put into the bank account. Listing based on the Accounting Equation as at the end of March.
Increase Decrease Balance Types Amount (RM)
(RM) (RM) (RM) Assets Bank 23,600
Bank: Inventories 21,000
 Capital injection 60,000 Fixture and fittings 20,000
 Purchased fixtures & fittings (20,000) Office equipment 6,000
 Purchased office equipment (6,000) 70,600
 Purchased inventories (15,000)
 Sales 12,000 Payables 15,000
Liabilities
 Paid staff salaries (1,000) Equity Capital 60,000
 Paid shop rental (2,000) Drawings (3,000)
 Paid utilities (500) Loss (1,400)
 Paid telephone (300)
70,600
 Paid stationery (600)
 Drawings (3,000) 23,600
Inventories:
 Purchased inventories 30,000 Question 3
 Sales (9,000) 21,000
Types Amount (RM)
Listing based on the Profit Determination Equation for the month of March. Assets Motor vehicles 45,000
Types Amount (RM) Market stall 5,000
Revenue Sales 12,000 Inventory 5,000
Cash 500
Bank 4,000
Expenses Cost of inventories sold 9,000
59,500
Staff salaries 1,000
Shop rental 2,000
Utilities 500 Liabilities Payables 2,500
Telephone 300 Loan from Camelia 10,000
Stationery 600 Equity Capital ?
13,400 59,500
Capital, ? = RM47,000
Loss Revenue - Expenses (1,400)