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Chap 1 - Tutorial

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18 views3 pages

Chap 1 - Tutorial

Uploaded by

W P
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TUTORIAL

Chapter 1 Introduction to Accounting

1. Classify the following items into liabilities and assets:


a) Loan to C Shirley
b) Bank overdraft
c) Fixtures and fittings
d) Computers used in Administrative Department
e) We owe a supplier
f) Warehouse we own

2. Classify the items into non-current asset, current asset, non-current liabilities, current
liabilities and capital.
(a) Premises
(b) Cash at bank
(c) Bank overdraft
(d) Equipment
(e) Account payables (for inventory)
(f) Inventory
(g) Bank loan
(h) Contribution from owner into the business
(i) Account receivables
(j) Motor vehicles
(k) Cash in hand
(l) Loan from Maybank
(m) Machinery

3. Fill in the blank based on the “Accounting Equation”

Assets (RM) Liabilities (RM) Capital (RM)


(a) 19,000 12,000
(b) 7,500 23,000
(c) 16,200 11,800
(d) 31,700 21,400
(e) 6,400 11,200
(f) 8,500 3,900
(g) 75,000 20,000
(h) 30,000 50,000
4. Smith sets up a business. Before he actually sells anything, he has bought motor vehicle
$75,000, premises $120,000, stock of goods $6,500. He did not pay in full his stock of
goods and still owes $4,000 in respect of them. He borrowed $100,000 from the bank.
After the event just described, and before the trading starts, he has $1,000 cash in hand
and $6,600 in bank.
Required:
Calculate his capital.

5. Charles starts a business. Before he actually starts to sell anything, he has bought
fixtures $5,000, motor vehicles $77,000 and a stock of goods $4,000. Although he has
paid in full for the fixtures and motor vehicle, he still owes $2,400 for the goods. His
uncle has lent him $10,000. Charles, after the above, has $500 cash in hand and $5,000
in the business bank account.
Required:
Calculate his capital.

6. Complete the columns to show the effects of the following transactions:

Assets Liabilities Capital


Bought a car and took bank loan
Bought goods and paying by cheque
The owner invested $ into the business
bank account
Buy office equipment on credit
Receive cash from receivables
Sold goods on credit
Pay payables for money owed last month
Return goods to supplier (previously
purchased on credit)

7. Complete the columns to show the effects of the following transactions:

Assets Liabilities Capital


The business pays payables RM70 in cash
Bought fixtures RM200 paying by cheque
Bought goods on credit for RM275
The proprietor introduces another RM500
cash into the business
Mr Smith lends the business RM200 in cash
A receivable pays us RM50 by cheque
The business return goods costing RM60 to
a supplier whose bill we had not paid
Bought additional shop premises paying
RM800,000 by cheque
8. B Gabriel has the following items in her Statement of Financial Position as at 30 April
2023:

RM
Capital 18,400
Accounts Payable 2,100
Fixtures 2,800
Motor Vehicles 3,900
Inventory 4,550
Accounts receivable 2,780
Cash at bank 6,250
Cash in hand 220

During the first week of May 2023:


(a) Bought extra inventory for RM400 on credit
(b) One of the receivables paid RM920 by cheque
(c) Bought a computer by cheque RM850

Required:
Find the net amount for the above mentioned items in her financial position.

9. Jonathan has the following assets and liabilities as at 30 November 2023:

RM
Accounts payable 2,800
Equipment 6,200
Motor vehicles 7,300
Inventory 8,100
Accounts receivable 4,050
Cash at bank 9,100
Cash in hand 195

During the first week December 2023:

(a) Bought extra equipment on credit for $110


(b) Bought extra inventory by cheque $380
(c) Paid payables by cheque $1,150
(d) Receivables paid him RM640 by cheque and RM90 by cash
(e) Put an extra $1,500 into the business, $1,300 by cheque and $200 in cash.

Required:
Find the net amount for the above mentioned items in her financial position.

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