1. Tutorial 3: Account & Double-entry Recording System
Question 1
For each of the accounts below, identify the Category of the accounts to either Asset, Liability,
Capital, Expenses or Revenue. Subsequently, indicate whether you will “Debit” or “Credit” the
account in order to increase its’ balance and to decrease its’ balance.
Accounts To increase To decrease
Accounts
Category balance balance
Debtors
Creditors
Bank
Cash in Hand
Sales of Goods
Drawings
Return Inwards
Return Outwards
Land
Capital
Motor Vehicles
Administration expense
Service Revenue
Repairs expense
Question 2
For each of the transactions below, draw up the T-accounts to show its double entry.
i) Made cash sales of RM7,000
ii) Provided service to client, receive cash RM400
iii) Buy new furniture of RM1,400 and pay by cheque.
iv) Ali commences his business by contributing cash RM25,000 and a delivery van worth
RM58,000
v) Purchase of goods intended for resale on credit from MC Supplies Sdn Bhd amounting to
RM62,000
vi) Pay house rent using company’s cheque for RM1,200
vii) Regular customer, Bajie Bhd purchased goods amounting to RM2,400 on credit for half of its
purchase.
viii) The owner Wendy brings in a cheque of RM5,000 as an additional investment into the
business.