MACQUARIE

BUSINESS SCHOOL
Department of Accounting
and Corporate Governance

ACCG1000 Accounting in Society

WEEK 4 TUTORIAL: Financial accounting for business – double
entry accounting - Worksheet

Tutorial Discussion Questions

Chapter 2: Q2.2

(a)

(b)

(c)

Chapter 2: BE2.2

Account Debit effect Credit effect Normal balance

(a) Accounts payable Decrease Increase Increase CR

(b) Advertising expense Increase Decrease Increase DR

(c) Service revenue Decrease Increase Increase CR

(d) Accounts receivable Increase Decrease Increase DR

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 Chapter 2: E2.1
Speedy Lawn Care Pty Ltd

1
Increase in Assets Debit Increase in Equity Credit
2 Debit Decrease in assets Credit
Increase in expenses
3 Debit Increase in equity Credit
Increase in assets
4 Debit Increase in equity Credit
Increase in Assets
5 Credi Decrease in assets Credit
Decrease in assets t
6 Debit Decrease in equity Debit
Increase in expenses
7 Debit
Decrease in assets
8

Chapter 1: E1.6

(a)

Cost principle

(b)

Accounting entity concept

(c)
Accounting period concept

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Additional Self Study Questions
Chapter 2: Q2.3

(a)

(b)

(c)

(d)

Chapter 2: Q2.6

(a)

(b)

(c)

(d)

(e)

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SOLUTION TO IN-CLASS ACTIVITY

Date Impact on the basic accounting Specific accounts

equation
DR CR

1st of John contributed $15000 in cash to Asset increase – Equity increase

Jan commence the business cash increase – capital
increase
3rd of Purchased office equipment for $3500 Asset increase- Asset decrease-
Jan Equipment Cash at bank
11 of Purchased office supplies for $550 on Asset increase- Liability
Jan credit from Omega office works office supplies increase-
accounts
payable
18 of Quoted for $4500 to the local primary
Jan schooling to provide tennis coaching to the
school’s students every Thursday
afternoon for 3 months
28th of John withdrew 1000 cash from the Equity decreases Assets
Jan business to pay for his daughter’s wedding decrease- cash
Drawing
at bank
30th of Paid omega Officeworks for office supplies Liabilities Asset decrease-
Jan purchased on Jan 11 and above decrease –
Cash at bank
Accounts
payable

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