Question

Question 1

Selected transactions for Bakar Enterprise, an interior decorator, are as follows:

March
2	Invested RM15,000 cash in business.
3	Purchased used car for RM4,000 cash for use in business.
9	Purchased supplies on account for RM500 .
11	Billed customer RM1,800 for services performed.
16	Paid RM200 cash for advertising.
20	Received RM700 cash from customers billed on 11 March.
23	Paid Ah Meng RM400 cash on balanced owed.
28	Paid RM1,500 cash salary to administrative assistant.
29	Withdrew RM2,000 cash for personal use.

For each transaction, indicate the following:

1. The basic type of accounts (asset, liability, owner’s equity, revenue, expenses)
2. The specific account to be debited or credited.
3. Whether the specific account is increased or decreased.
4. Accounts to be debited and credited.

          (10 marks)

Use the following format, in which the 2 March transaction is given as an example.

Date	Basic type	Specific account	Effect	Account debited	Account credited
March 2	Asset Owner’s equity	Cash Capital	Increase Increase	Cash	Capital

ANSWER ALL QUESTIONS Question 1 Selected transactions for Bakar Enterprise, an interior decorator, are as follows: March 2 Invested RM15,000 cash in business. Purchased used car for RM4,000 cash for use in business. 9 Purchased supplies on account for RM500. 11 Billed customer RM1,800 for services performed. 16 Paid RM200 cash for advertising. 20 Received RM700 cash from customers billed on 11 March 23 Paid Ah Meng RM400 cash on balanced owed. 28 Paid RM1,500 cash salary to administrative assistant 29 Withdrew RM2,000 cash for personal use. Produ ༧ ཨ | Re/Rམ། For each transaction, indicate the following: a) The basic type of accounts (asset, liability, owner's equity. revenue, expenses) b) The specific account to be debited or credited. c) Whether the specific account is increased or decreased. d) Accounts to be debited and credited. (10 marks) Use the following format, in which the 2 March transaction is given as an example. Date Effect Basic type Asset Specific account Cash Account debited Cash Account credited March 2 Increase Capital Increase Capital Owner's equity

Answer 1

Account Debited Account Credited Cash Capital Date Basic Type Asset Mar.2 Owners' Equity Asset Mar.3 Asset Asset Mar.9 Liability Car or Equipment Cash Supplies Accounts Payable Asset Mar.11 Owners' Equity Accounts Receivable Service Revenue Specific Account Account Effect Cash Increase Capital Increase Car or Equipment Increase Cash Decrease Supplies Increase Accounts Payable Increase Accounts Receivable Increase Service Revenue Increase Advertising Expense Increase Cash Decrease Cash Accounts Increase Receivable Decrease Accounts Payable Decrease Cash Decrease Salary Expense Increase Cash Decrease Drawings Increase Cash Decrease Owners' Equity Mar.16 Asset Advertising Expense Cash Cash Accounts Receivable Accounts Payable Cash Asset Mar. 20 Asset Liability Mar. 23 Asset Owners' Equity Mar.28 Asset Owners' Equity Mar.29 Asset Salary Expense Cash Drawings Cash