Question 2 (a) Show the double entry for the following transactions and state the effect of...

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Question 2 (a) Show the double entry for the following transactions and state the effect of each of the transactions on the accounting equation. An example has been given as below: Transactions Double entry Cash sales Effect Asset increase Revenue increase Transactions 1. Bought fixtures and fittings for the shop in cash RM30,000. 2. Paid rent RM1,200 for the shop in cash 3. Owner transferred a computer from the business to the home worth RM5,000. 4. A loan of RM2,000 is received in cash from Salwa. 5. Sold goods on credit to Ali for RM10,000. 6. Purchased goods on credit RM4,500 from Abu. 7. Paid Abu in cash. 8. Ali returned goods to the company worth 1,000. 9. Paid carriage outwards by cheque amounting to RM 500. 10. Received sales commission from ABC company RM3,000 by cheque. Dr Cash A/C Cr Sales A/C Effect 2 Double entry (10 Marks) (b) You are required to record all the above transactions in the related journals. (General journal & special journal). (10 marks) (Total: 20 Marks) Question 2 (a) Show the double entry for the following transactions and state the effect of each of the transactions on the accounting equation. An example has been given as below: Transactions Double entry Cash sales Effect Asset increase Revenue increase Transactions 1. Bought fixtures and fittings for the shop in cash RM30,000. 2. Paid rent RM1,200 for the shop in cash 3. Owner transferred a computer from the business to the home worth RM5,000. 4. A loan of RM2,000 is received in cash from Salwa. 5. Sold goods on credit to Ali for RM10,000. 6. Purchased goods on credit RM4,500 from Abu. 7. Paid Abu in cash. 8. Ali returned goods to the company worth 1,000. 9. Paid carriage outwards by cheque amounting to RM 500. 10. Received sales commission from ABC company RM3,000 by cheque. Dr Cash A/C Cr Sales A/C Effect 2 Double entry (10 Marks) (b) You are required to record all the above transactions in the related journals. (General journal & special journal). (10 marks) (Total: 20 Marks)

Answer rating: 100% (QA)

a Transactions Effect on Accounting Equation Double Entry 1 Bought fixtures and fittings for the shop in cash RM30000 Asset increase Expense increase ... View the full answer