1. Question 1
From the list of transaction given below, you are required to show the effect
(increase/decrease) on the accounting equation:
NO TRANSACTIONS ASSETS LIABILITY EQUITY
i.e.: The owner commence the business
by investing RM 10,000 into business
account
Increase
RM 10,000
Increase
RM 10,000
1 The business loan money RM 20,000 from
the bank
2 The business purchased a Lorry by
cheque RM50,000
3 The business bought goods for sale
RM5,000 on credit
4 Received cash RM 3,000 from debtor
Ahmad
5 Owner withdrew money RM1,500 from the
business for his own use
6 Paid the creditor Ah Seng RM2,000 by
cheque
7 The owner brought in personal computer
RM1,500 into the business
Question 2
State the accounts that should be debited and credited for each transaction below:
Transaction Account to
be debited
Account to
be credited
i.e.: Owner invested RM 15,000 of personal
cash and deposited into business account
Bank
RM 15,000
Capital
RM 15,000
1 Bought goods RM 10,000 on credit from Jati
2 Bought goods RM 5,000 by cash
3 Sold goods RM 6,000 on credit to Halban
4 Returned defective goods RM 2,000 to Jati
5 Owner took goods RM 300 from the business

2. for his children’s use.
6 Paid Jati RM 7,500 by cheque. Discount
received RM 500
7. Purchased furniture RM 3,500 on credit from Ali
Perabot
8. Received goods RM 330 return by Halban
9. Pay rent RM 1,000 by cheque.
Question 3
The following balances were extracted from the books of Mohamed on 31 August 2008:
Accounts RM
Bank 5,930
Building 20,000
Purchases 13,500
Stock (1 August 2008) 2,500
Sales 26,000
Debtors 10,800
Creditors 5,500
Return Inwards 870
Return Outwards 600
Vehicles 16,000
Bank Loan 10,000
Wages 3,200
Insurance 1,800
Discount Allowed 770
Discount Received 580
Capital 32,310
Required:
Draw up a Trial Balance as at 31 August 2008.
Mohamed Trading
Trial Balance at 31 August 2008
ACCOUNTS DEBIT CREDIT