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Additional Comprehensive Exercise

The document provides three accounting questions and examples of transactions for a law office, tuition business, and travel agency. Students are asked to record the transactions in an accounting equation table to show the effects on assets, liabilities, and equity. Question 1 lists transactions for a law office in August 2018. Question 2 lists transactions in May 2019 for a tuition business. Question 3 lists transactions in March for a travel agency startup. Students must state the amount, account, and effect for each transaction in the provided accounting equation format.

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Faiz Ghazali
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127 views4 pages

Additional Comprehensive Exercise

The document provides three accounting questions and examples of transactions for a law office, tuition business, and travel agency. Students are asked to record the transactions in an accounting equation table to show the effects on assets, liabilities, and equity. Question 1 lists transactions for a law office in August 2018. Question 2 lists transactions in May 2019 for a tuition business. Question 3 lists transactions in March for a travel agency startup. Students must state the amount, account, and effect for each transaction in the provided accounting equation format.

Uploaded by

Faiz Ghazali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AA015| 2020/2021

ADDITIONAL COMPREHENSIVE EXERCISE 1


2 HOURS

TOPIC 2 : BASIC ACCOUNTING CONCEPTS


SUBTOPIC : ACCOUNTING EQUATION
CLO 3 (C3, C4) : Relate financial accounting problem solving with multiple
accounting method

Direction:
 This paper consists of three questions.
 Answer all questions.
 SUBMIT YOUR ANSWER VIA GC. The selected answer will be marked.
Then, you will check yours and resubmit the correct answer.

QUESTION 1
Abu opened a law office on July 1, 2018. During August, the following transactions
occurred.

Date Transactions
Aug 1 Collected RM1,200 of accounts receivable.
3 Paid RM2, 800 cash on accounts payable.
10 Recognized revenue of RM7,500 of which RM3,000 is collected in cash
and the balance is due in September.
12 Purchased additional equipment for RM2,000, paying RM400 in cash and
the balance on account.
15 Received RM2,000 from Standard Federal Bank - money borrowed on a
note payable.
20 Withdrew RM700 in cash for personal use.
28 Paid salaries RM2, 500, rent for August RM900, and advertising
expenses RM400.
29 Incurred utility expenses for month on account RM270.

Required: Show the effects of each transactions listed above in the accounting
equation using the following format:

Example for first transaction:

ASSETS = LIABILITIES + OWNERS EQUITY


(RM) (RM) (RM)
AA015| 2020/2021

Date Cash Equipment Accounts = Accounts Notes Capital Revenue


Receivable Payable Payable (Expenses)
Aug 1 1 200 (1 200)
3 (2 800) (2 800)
10 3 000 4 500 7 500
12 (400) 2 000 1 600
15 2 000 2 000
20 (700) (700)
28 (3 800) (3 800)
29 (270) (270)
TOTAL 3 530 3 530

QUESTION 2

Mr Syforn Benedick started his tuition business in Bandar Malim Nawar on May 1,
2019. The following transactions occurred during the month of the May.

Ma Transactions
y
1 Invested RM20,000 to start a business Tuisyen Bestari.
3 Purchased chairs and desks worth RM18,000 on credit from Kedai Perabot
Imran.
4 Purchased supplies worth RM4,000 by cash.
7 Received RM11,600 as a tuition fee for the first month.
10 Opened the fourth class worth RM4,000 and received cash RM2,800. The
balance is due in next month.
12 Paid salary for tuition teachers RM6,000 and shop rental RM2,000.
15 Received a utilities bill RM750.
18 Received loan RM15,000 cash from Bank Rakyat.
20 Withdrew RM250 for personal use
21 Settled the utilities bill
24 Paid RM600 to Harian Metro for advertising service.
26 Send bill to 6 students RM900 for the services given.
27 Paid half for the equipment purchased on credit on April 3.
29 Received 15 new students for new English class worth RM1500. Class will
start next week and the tuition fee will be received after the first class.
30 Received a cash payment of RM600 from bill sent on April 26.

Required: Show the effects of the following transactions using the basic accounting
equation table. You must state the amount, the account and the effect, (+) or (-).

Example for first transaction:


May ASSET(RM) = LIABILITIES(RM) + OWNER’S EQUITY(RM)
1 Cash (+) 20 000 Capital (+) 20 000
3 Equipment (+)18 000 Accounts payable
AA015| 2020/2021

(+)18 000
4 Cash (-) 4 000, Supplies
(+) 4 000
7 Cash (+) 11 600 Revenue (+) 11 600
10 Cash (+) 2 800,Accounts Revenue (+) 4 000
Receivable (+) 1 200
12 Cash (-) 8 000 Expenses (-) 8 000
15 Cash (-) 750 Capital (-) 750
18 Cash (+) 15 000 Loan (+) 15 000
20 Cash (-) 250 Drawing (-) 250
21 Cash (-) 750 Accounts payable (-)
750
24 Cash (-) 600 Expenses (-) 600
26 Accounts Receivable (+) Revenue (+) 900
900
27 Cash (-) 9 000 Accounts payable (-)
9 000
29
30 Cash (+) 600,Accounts
Receivable (-) 600
TOTAL 50 150 50 150

QUESTION 3

On March 1, Julie Sparrow established Sparrow's Travel Agency. The following


transactions were completed during the month.

Date Transactions
March 1 Invested RM15,000 cash to start the agency. 
5 Paid RM600 cash for March office rent. 
7 Purchased equipment for RM3,000 cash.
10 Incurred RM700 of advertising costs in the Malaysia Kino, on account.
13 Paid RM900 cash for office supplies.
16 Performed services worth RM10,000: RM3,000 cash is received from
customers, and the balance of RM7,000 is billed to customers on
account.
19 Withdrew RM600 cash for personal use.
22 Paid Malaysia Kino RM500 of the amount due in transaction (4). 
25 Paid employees' salaries RM2,500.
28 Received RM4,000 in cash from customers who have previously been
billed in transaction (6).
AA015| 2020/2021

Required: Show the effects of each transactions listed above in the accounting
equation using the following format:

Example for first transaction


ASSETS = LIABILITIES + OWNERS EQUITY
(RM) (RM) (RM)

Date Cash Supply Equipment Accounts = Expense Capital Revenue


Receivable Payable (Expenses)
Mar 1 15,000 15 000
5 (600) (600)
7 (3 000) 3 000
10 700 (700)
13 (900) 900
16 3 000 7 000 10 000
19 (600) (600)
22 (500) (500)
25 (2 500) (2 500)
28 4 000 (4 000)
TOTAL 20 800 20 800
:

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