Institute of Professional Studies and Accounting Services (IPSAS)

Bosasso, Puntland-Somalia.
Tel: 7790443/7970443
COURSE NAME: Diploma in Financial Accounting( Batch 26)

Date: 11th Nov. 2023

Progress test: 2

1) Complete the table below by indicating the effect of each transaction on assets, liabilities as
well as capital. The first is done for you:

S/N TRANSACTION EFFECT UPON

ASSETS LIABILITIES CAPITAL
1)
We bought goods on
credit +(Stock) +(creditors)

A debtor paid us
2) money by cash.

3) We sold goods on
credit.

4)
The owner withdrew
goods for own use.

5)
Ali lent us money by
cheque.

One of the debtors

6) returned goods to us.

1
 The owner pays a
7) creditor from his
personal funds.

We bought a computer
8) by cheque.

We returned some
9) goods to a creditor.

We bought a shop by
10) cheque.

We paid a creditor by
11) cash.

A debtor pays cash to

12) owner and the owner used
it privately/personally.
We repaid part of the loan
13) from Dahabshil Bank.

14) The owner withdrew cash

for private use.

15) We bought a goods by

cheque.

16) Amal Bank lent us money

by cheque.

17) We bought a computer from

New Vision on credit.
The owner introduced
18) further capital by cheque

19) We sold goods by

cheque.
20) We repaid the loan from
Amal Bank by cash.

Good luck.