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    Template Tutorial EFFECT

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    kopayied 07
    The transactions had the following effects: 1) Starting the business with RM 10,000 increased assets and capital. 2) Purchases of goods on credit increased expenses and liabilities, while purchases paid by cheque decreased assets. 3) Selling goods on credit increased revenues and assets, while cash sales increased revenues and assets. 4) Drawings by the owner decreased assets and capital, while returning goods decreased expenses.

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    Template Tutorial EFFECT

    Uploaded by

    kopayied 07
    25 views2 pages
    The transactions had the following effects: 1) Starting the business with RM 10,000 increased assets and capital. 2) Purchases of goods on credit increased expenses and liabilities, while purchases paid by cheque decreased assets. 3) Selling goods on credit increased revenues and assets, while cash sales increased revenues and assets. 4) Drawings by the owner decreased assets and capital, while returning goods decreased expenses.

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    The transactions had the following effects: 1) Starting the business with RM 10,000 increased assets and capital. 2) Purchases of goods on credit increased expenses and liabilities, while purchases paid by cheque decreased assets. 3) Selling goods on credit increased revenues and assets, while cash sales increased revenues and assets. 4) Drawings by the owner decreased assets and capital, while returning goods decreased expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views2 pages

    Template Tutorial EFFECT

    Uploaded by

    kopayied 07
    The transactions had the following effects: 1) Starting the business with RM 10,000 increased assets and capital. 2) Purchases of goods on credit increased expenses and liabilities, while purchases paid by cheque decreased assets. 3) Selling goods on credit increased revenues and assets, while cash sales increased revenues and assets. 4) Drawings by the owner decreased assets and capital, while returning goods decreased expenses.

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    TUTORIAL (EFFECT)

    Show the effect of the following transactions:


    Example
    Transactions Effect
    a. Cash sales RM100 Increase Asset cash RM100
    Increase revenue sales RM100

    a. Started business with RM 10,000 in the bank


    b. Bought goods worth RM1,000 on credit from Amin Enterprise
    c. Bought goods from Ezzat and paid RM500 by cheque
    d. Purchased a van worth RM15,000 using a loan from BMF Finance
    e. Sold goods on credit to Ariff RM2,000
    f. Cash sales to Aziz RM200
    g. The owner took RM150 worth of goods for his own use
    h. The owner took RM300 cash for his son fee
    i. Returned goods to Amin Enterprise RM200.
    j. Paid balance amount RM……. owe to Amin by cheque. (calculate the debt
    balance amount)
    k. Ariff returned goods to the business worth RM250
    l. Bought RM2,500 worth of office computer by cheque
    m. The owner brought in his personal car worth RM1,500 for the business
    use.
    TRANSACTION EFFECT
    a) Started Business RM 10,000 Increase Asset Bank RM 10,000
    Increase Capital RM 10,000
    b) Bought Goods RM 1,000 On Credit Amin Increase Expenses Purchase RM 1,000
    Increase Liability Loan Amin Ent RM 1,000
    c) Bought Good RM 500 Paid Cheque Ezzat Increase Expenses Purchase RM 500
    Decrease Asset Bank RM 500
    d) Purchase Van RM 15,000 By Loan Bmf Increase Asset Van RM 15,000
    Finance Increase Liability RM 15,000 Bmf Finance
    e) Sold Goods to Ariff On Credit RM 2,000 Increase Revenue Sales RM 2,000
    Increase Asset Ariff RM 2,000
    f) Cash Sales to Aziz RM 200 Increase Revenue Sales RM 200
    Increase Asset Cash RM 200
    g) Owner Took RM 150 Of Goods for Own Use Decrease Expenses Purchase RM 150
    Decrease Capital (Drawing) RM 150
    h) Owner Took RM 300 Of Cash for Own Use Decrease Asset Cash RM 300
    Decrease Capital (Drawing) RM 300
    i) Return Goods to Amin Ent RM 200 Decrease Expenses Return Outward RM 200
    Decrease Liability Amin Ent RM 200
    j) Paid Balance Debt Amin RM 800 By Decrease Liability Amin Ent RM 800
    Cheque Decrease Asset Bank RM 800
    k) Ariff Return Goods to Business RM 250 Decrease Asset Ariff RM 250
    Decrease Revenue Return-Inward RM 250
    l) Bought Office Computer RM 2,500 By Increase Asset Equipment RM 2,500
    Cheque Decrease Asset Bank RM 2,500
    m) Owner Brought Personal Car RM 1,500 For Increase Asset Car RM 1,500
    Business Use Increase Capital RM 1,500

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