Tutorial 1 Introduction to Accounting 1 LTJ 2020

Tutorial 1 Types Amount (RM)

Assets
Section A

1. Define accounting. Explain the stages involved in your answer.

2. What is the difference between accounting and bookkeeping?

3. Complete the gaps in the following table:

Assets (RM) Liabilities (RM) Equity (RM) Liabilities
82,000 50,000
15,000 70,000
105,000 38,000 Equity
156,900 0
73,000 35,000

4. Classify the following items into assets, liabilities and equity, then, find
out the amount of capital:
5. State what are the correct classifications for the following items? Are
 Bank RM20,000
they debit or credit items?
 Cash RM2,000
Correct classification Dr / Cr
 Drawings RM5,000
Discount received
 Loan from bank RM50,000
Commission received
 Inventories RM19,000
Receivables
 Motor vehicles RM80,000
 Loss RM13,000
Cash from owner
 Payables RM15,000
Sales
 Receivables RM18,000
Inventory sold
Insurance claim
You may use the following format for your answer: received
Carriage inwards
Advertising
Office stationery
Payables
Cash to owner
Salaries
Electricity
Rental
 Tutorial 1 Introduction to Accounting 2 LTJ 2020

Discount given
Insurance paid
Bank interest paid
Carriage outwards
Commission paid

6. Discuss the main users and their uses of accounting information.

Section B: Extra exercise questions (for students’ own practice)

Question 1 Question 2
Bibi contributed RM60,000 to start a new business on 1 March, selling Alan extracted the following transaction for the month of May:
school and college textbooks. The following are transactions that occurred
in the month of March: 1 Started the business with cash RM1,000 and bank account of
 Paid by cheque RM20,000 for fixtures and fittings RM19,000 as capital.
 Paid by cheque RM6,000 for office equipment (i.e. computer, printer and 3 Bought computer RM3,600 from Syarikat Cerah Sdn. Bhd. on credit
fax machine) term.
 Purchased inventories totalling RM30,000, of which RM15,000 was paid 7 Purchased goods RM6,000 from Daya & Co on credit term.
by cheque and the balance will be paid 2 months later 9 Received cheque RM2,600 from sales on cash term.
 Sales totalling RM12,000, all deposited into the bank account 12 Issued a cheque RM3,000 for purchases of goods on cash term.
(inventories sold were costing RM9,000) 16 Issued a cheque RM5,700 to Daya & Co., as settlement of purchases
 Paid staff salaries by cheque RM1,000 above, after deducting a discount received of RM300.
 Paid shop rental by cheque RM2,000 17 Sales of goods RM4,000 to Era Enterprise on credit term.
 Paid utilities by cheque RM500 21 Fatimah withdrew cash RM200 for family use.
 Paid telephone by cheque RM300
24 Issued a cheque RM2,000 to Syarikat Cerah Sdn. Bhd. as partial
 Paid printer ink and A4 paper by cheque RM600
settlement of amount owing.
 Withdrew RM3,000 cheque for personal use
27 Received cheque RM3,800 from Era Enterprise, as settlement of sales
Required: above, after deducting discount allowed of RM200.
(a) Into which account was Bibi’s capital contribution of RM60,000 28 Miscellaneous expense RM280 paid by cash.
deposited? Calculate the balance of this account at the end of March.
(b) Calculate the inventories balance at the end of March.
Required:
(c) Prepare a listing based on the Profit Determination Equation for the
Prepare the journal entries to show the double entries of all the transactions
month of March.
above.
(d) Prepare a listing based on the Accounting Equation as at the end of
March.
 Tutorial 1 Introduction to Accounting 3 LTJ 2020

Question 3 Question 4
Prepare the journal entries to show the double entries of the following Mr John started his tailoring business on 1 January. He has no accounting
transactions of Gogo Trading in the month of March: knowledge and requires your help in doing up the accounts of his business.
He has provided the following information for the whole year from 1
1 Started business with RM59,000 in the bank and RM1,000 cash. January to 31 December.
2 Bought stationery by cheque RM750. RM
3 Bought goods on credit from Smart Warehouse RM10,100. Bank balance 75,000
4 Sold goods for cash RM3,400. Cash balance 1,030
Sales 86,660
5 Paid insurance by cash RM290.
Amount owing by Alex 500
7 Bought a computer on credit from Tech Trader RM4,000. Amount owing by Jessy 250
8 Paid miscellaneous expenses by cash RM50. Amount owing by Gordon 750
10 Sold goods on credit RM6,300 to Bina Construction. Cost of inventories sold 5,150
14 Paid wages by cash RM350. Shop rental 6,000
17 Paid rent by cheque RM2,250. Equipment 15,000
20 Received cheque RM4,000 from Bina Construction. Electricity and water 3,880
21 Paid Tech Trader by cheque RM4,000. Air-conditioners 6,000
Amount owing to Coco Textiles 1,500
23 Bought goods on credit from Savemart RM2,500.
Interest received 300
25 Sold goods on credit to Flora Trader RM6,450. Bank and cash withdrawn for home use 12,000
31 Paid Savemart by cheque RM1,250. Commission paid to Kent (introduced new customers) 2,000
Inventories balance 2,900

Required:
(a) Find out how much profit Mr John’s business has made for the year,
using the Profit Determination Equation.
(b) Find out how much capital was injected by Mr John into his business
on 1 January, using the Accounting Equation.