NAME : JASLEEN QISTIENA BINTI ZAINUDDIN

MATRIKS NUMBER : UDE210044

COURSE : FINANCIAL AND REPORTING I

TUTORIAL 3

Question 1

What is the accounting equation? Define all the items in the accounting equation.

The accounting equation is accounting and fundamental element of the balance sheet, the
equation is Asset = Liability + Owner’s Equity. Asset are item that owned by a business, that can help
make the business generate income to make a profit. For examples of asset is inventory, furniture
and cash in bank. Asset known as two categories is current asset such as inventory and non-current
asset such as property. Liability is item that a business didn’t pay enough or buy something on credit
so the payment will clear up next month or follow the agreement’s supplier. Examples of liability is
rent, account receivable and loan. Liability also known as two categories is current liability such as
trade payable and non-current liability such as bond. Owner’s Equity is the amount of the owner’s
interest or investment in the business. Owner’s equity can be divide to four categories such as
Capital, Drawing, Revenue, Expenses.

Question 2
Please indicate the accounting class (Asset, Liability or Equity) on the following accounting
items.
No Accounting
Item
. Class
1 Computer Asset
2 Motor vehicle Asset
3 Building Asset
4 Account payable Liability
5 Drawing Equity
6 Land Asset
7 Debenture Liability
8 Equipment Asset
9 Table Asset
10 Chair Asset
11 Sales revenue Asset
12 Mortgage Liability
13 Watch Asset
14 Inventory Asset
15 Dividend received Liability
16 Marketing expense Equity
17 Cash Asset
18 Short term debt Asset
19 Bank overdraft Liability
20 Capital Equity
 21 Bank Asset
22 Insurance expense Liability
23 Handphone Asset
24 Ipad Asset
25 Utility expense Liability
26 Long term loan Liability
27 Rent received Asset
28 Fan Asset
29 Short term investment Asset
30 Notes payable Liability
31 Service revenue Asset
32 Stationary Asset
33 House Asset
34 Discount received Asset
35 Long term investment Asset
36 Refrigerator Asset
37 Account receviable Asset
38 Bond Liability

Question 3
Encik Luqman run a business based on soap products. The following transactions occurred
in June 2016.
Account (s) to Account (s) to
June Transactions
be increase be decrease
Luqman invested RM10,000 cash in the Equity Asset
business. ( Capital ) ( Cash )
1
-Increase

Borrowed RM20,000 from a bank and Asset Liability

2 received the loan in form of cheque and this ( Bank ( Loan )
was deposited in the bank account. account ) -increase
Purchased office equipment worth RM10,000 Asset Liability
3 on credit. ( office ( account
equipment ) payable )
Purchase goods RM6,000 from Downy Sdn Liability Equity
9 Bhd on credit. ( Downy Sdn ( Drawing )
bhd )
Sold goods RM1,000 to Karim Sdn Bhd on Equity Asset
credit. ( Capital ) ( Account
12
receivable )
-increase
Paid RM450 for rent and RM350 for utilities. Asset Equity
15 ( cash ) ( Drawing )
-decrease -decrease
Sold RM600 of goods to Hamid Bhd by cash. Asset Asset
20 ( cash ) ( Account
receivable )
Paid full amount for 9th June by cash. Asset Liability
23 ( Cash ) ( Account
-decrease payable)
 Owner withdrew RM300 of goods from the Asset Equity
26 business for his own use. ( Account ( drawing )
receivable )
Paid RM1,000 for employee salaries. Liability Equity
30 ( salaries ) ( drawing )
-decrease

Asset Liability Owner’s Equity

Date = +
(RM) (RM) (RM)
Office Account Bank Account
Cash Loan Capital Drawing
Furniture receivable payable
June 10,000 10,000
1
20,00 20,000
2
0
3 10,000 10,000
9 6,000 ( 6,000 )
12 1,000 1,000
15 ( 800 ) ( 800 )
20 600 ( 600 )
(6,000 (6,000)
23
)
26 300 ( 300 )
(1,000 ( 1,000 )
30
)
Question 4
Kris started a delivery service, Kris Deliveries, on June 1. The accounting transactions in the
table below occurred during the month of June.

Account (s) to Account (s) to

June Transactions
be increase be decrease
Kris invested RM10,000 cash in the Asset Equity
1
business. ( cash ) ( Capital )

Asset Liability
Purchased a used van for deliveries for
2 ( account
RM12,000 on credit. ( vehicle )
payable )

Asset Equity
3 Paid RM500 for office rent for the month. ( cash ) ( drawing )
-decrease

Asset Equity
5 Performed RM4,400 of services on account. ( Cash ) ( drawing )
-decrease

Asset Equity
9 Paid RM200 cash for repairing a van. ( cash ) ( drawing )
-decrease

Liability Asset
Purchased stationeries for one-year use for
12 ( account ( Stationeries )
RM150 on credit.
payable )

Asset Asset
Received a cash payment of RM1,250 for
15 ( Cash ) ( account
services provided on 5th June.
receivable )

Received a cash payment of RM1,500 for Asset Equity

20
services provided. ( Cash ) ( Capital )

Asset Liability
Made a cash payment of RM500 on the
23 ( Cash ) ( loan )
loan obtained on 2nd June.
-descrease

Liability Equity
26 Paid RM250 for utilities.
( drawing )

Liability Equity
30 Paid RM1,000 for employee salaries.
( drawing )
 Asset Liability Owner’s Equity
Date = +
(RM) (RM) (RM)
Account stationeries Account
Cash Vahicle Loan Capital Drawing
receivable payable
June 10,000 10,000
1
2 12,000 12,000
3 ( 500 ) ( 500 )
5 ( 4,400) ( 4,400)
9 ( 200 ) ( 200 )
12 150 150
15 1,250 3,150
20 1,500 1,500
23 ( 500 ) 11,500
26 ( 250 ) ( 250 )
30 ( 1,000) ( 1,000)