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Tutorial Topic 1 (Q) - PDF

The document discusses various accounting concepts and principles, including the separation of personal and business transactions, the money measurement concept, and the historical cost principle. It includes questions related to classifying items as assets or liabilities, calculating capital, and computing assets, liabilities, and owner's equity for specific scenarios. Additionally, it requires showing the effects of transactions on the accounting equation.

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Caitlin Lim
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9 views4 pages

Tutorial Topic 1 (Q) - PDF

The document discusses various accounting concepts and principles, including the separation of personal and business transactions, the money measurement concept, and the historical cost principle. It includes questions related to classifying items as assets or liabilities, calculating capital, and computing assets, liabilities, and owner's equity for specific scenarios. Additionally, it requires showing the effects of transactions on the accounting equation.

Uploaded by

Caitlin Lim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACC30305

PRINCIPLES
TUTORIAL TOPIC 1 – Understanding Accounting OF and
Equation
ACCOUNTING
Concepts

Question 1

Identify the relevant accounting concepts.

(a) Alex paid his car instalment of RM600 using his business’ cheque. This amount was recorded
in the business’ drawing account.

Answer:

business/accouting concept
based on this concept, personal transaction mus tbe recorderd separtely
from the business transactions. tehrefore, since Alex’s car instalment paid
using the business’ cheque is a personal transaction, the amount was
recorded separately in the drawing account.

(b) The motivational level of staff is not recorded in the accounting records.

Answer:

money measurement concept

(c) Sunrise Enterprise was established in year 2018 and it has no plan to end its business in the
foreseeable future. Therefore, the accounting clerk records only the original cost of the business
existing assets and ignores the market values.

Answer:

historical cost /going concern cost


> have indefinite life

1
Question 2

Classify the following items either Asset (A) / Liability (L)


(a) Office equipment
(b) Land
(c) Bank loan
(d) Cash in hand
(e) Furniture
(f) Trade payables
(g) Trade receivable
(h) Machinery
(i) Building
(j) Closing Inventory
(k) Fixtures & Fitting
(l) Bank overdraft
(m) Bank

Question 3

Shiras, the owner of Shiras Enterprise, has the following assets and liabilities on 1 February
2025:
(a) Cash RM4,500
(b) Building RM65,000
(c) Shop Equipment RM18,000
(d) Bank Loan RM25,000
(e) Trade payables RM3,700

Required:
Compute Shira’s capital in the business.
Answer:

Question 4
Fun Travel Sdn Bhd has the following information as at 31 July 2024: Cash at bank RM5,830,
Land RM55,400, Building RM94,750, Fixtures & Fittings RM12,950, Trade payables RM8,250,
Bank Loan RM5,000, and Trade receivables RM6,750.

Required:
Compute the followings:
(a) Assets
(b) Liabilities
(c) Owner’s equity
Answer:

Question 5

For each transaction, show the effects on the accounting equation.

(a) Received cash from the proprietor as an additional investment in the business, RM10,000.
(b) Paid cash to Sunshine Company Ltd for the amount owed RM1,850.
(c) Paid for purchase of office furniture with cheque RM3,800.
(d) Received cheque RM1,400 from Mrs. Maxwell, a customer, for amount owes.
(e) Repaid loan to the bank by writing a cheque for RM15,000 to the bank.
(f) Paid a 10% deposit to Sany Machines by cheque for the purchased of machinery costing
RM12,000 with the balance to be paid in installments.
(g) Sold goods on credit to Mall & Co, RM9,600
(h) Paid cheque RM780 for rental of premises.
(i) Proprietor transferred cash RM5,500 from personal account to business account.
Answer:
Assets = Liabilities + Owner Equity
RM RM RM
(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

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