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W2 - Key Tutorial 3

The document discusses accounting terms and their classification in financial statements. It provides a key exercise with accounting terms and their proper financial statement components. It also provides word problems involving transactions and their effects on the accounting equation.

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Rules of Survival MALAYSIA
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20 views5 pages

W2 - Key Tutorial 3

The document discusses accounting terms and their classification in financial statements. It provides a key exercise with accounting terms and their proper financial statement components. It also provides word problems involving transactions and their effects on the accounting equation.

Uploaded by

Rules of Survival MALAYSIA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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TUTORIAL-CHAPTER 3:

ACCOUNTING EQUATION & ACCOUNTING CLASSIFICATION


KEY EXCERCISE
1. Determine the following accounting terms fall into which component of Financial
Statement (Non-Current Asset, Current Asset, Non-Current Liability, Current Liability,
Owner’s Equity, Revenue or Expenses)

ACCOUNTING TERMS COMPONENTS OF FS


Capital
Cash at Bank
Fixtures & Fittings
Drawings
Account Receivables
Salaries
Sundry Expenses
Investment in ASB (10% p.a)
Office Expenses
Furniture
10% Loan from Bank Rakyat
Advertising Expenses
Salaries and wages
Copyright
Rental received
Cash in Hand
Investment in Fixed Deposit
Commission Income
Selling Expenses
Insurance Expenses
Delivery Van
Debtor
Account Payables
Utilities
Rental Expenses
Rental Income
Land and Building
Brand Name
Creditor
Printing
Motor Vehicle Expenses
Plant & Machinery
ACCOUNTING TERMS COMPONENTS OF FS
Postage and stationery
Repairs and maintenance
Freehold Land
Electricity and water
Money Owing from Bank (15 years)
Motor Vehicle
Office Equipment
Closing Inventory
Overdraft Bank
Depreciation on Motor vehicle
Sales
Purchases
Dividend received from fixed deposit
Interest on Fixed Deposit

2. Ayesha, the owner of Soho Enterprise, has the following assets and liabilities on 1
February 2021:

Cash RM4,500; Building RM65,000; Shop equipment RM18,000; Bank loan RM25,000;
Creditors RM3,700.

How much is owner’s equity in the business?


3. From the following information as at 31 July 2021, calculate the amount of Alisa’s
equity in the business and prepare a statement of financial position for Alisa Boutique:

Cash at bank RM5,830; Land RM55,400; Buildings RM94,750; Fixtures and fittings
RM12,950; Creditors RM8,250; Loan from D Bank (payable within 1 year) RM15,000.
4. Identify the accounting term involve in the following business transaction and show the
effect of each transaction given on accounting equation (asset, expense, capital,
revenue and liability.
i) Started business with cash RM 20,000 and motor vehicle RM 6,500 contributed
by the owner.
No. Accounting Term Component of FS Effect on AE (+ / -)

ii) Paid for advertising expenses by cash RM 500.


No. Accounting Term Component of FS Effect on AE (+ / -)

iii) Purchased a building, RM 150,000 with the aid of a loan from AFC Finance
House.
No. Accounting Term Component of FS Effect on AE (+ / -)

iv) The owner paid his daughter’s piano class fees using a business cheque, RM 300.
No. Accounting Term Component of FS Effect on AE (+ / -)

v) Owner brought in personal furniture amounting to RM 500 for office use.


No. Accounting Term Component of FS Effect on AE (+ / -)
vi) Paid loan from AFC Finance House by cheque, RM 899.
No. Accounting Term Component of FS Effect on AE (+ / -)

vii) Paid shop assistant’s salary and stationery in cash, RM 900 and RM 50
respectively.
No. Accounting Term Component of FS Effect on AE (+ / -)

viii) Deposited cash RM 5,000 into business’s bank account.


No. Accounting Term Component of FS Effect on AE (+ / -)

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