22/1/2012
COMMERCE DEPARTMENT
PA101 FUNDAMENTALS OF ACCOUNTING
DOUBLE ENTRY AND TRIAL BALANCE
EXERCISE
QUESTION 1
State the double entry for each of the following transactions:
NO | TRANSACTION | DEBIT | CREDIT |
1 | The owner brought in cash and motor vehicles into the business | ||
2 | Paid cash for purchase of office equipment | ||
3 | Owner deposit cash into bank account | ||
4 | Purchase goods on credit from Giant | ||
5 | Cash sales | ||
6 | Sold goods on credit to Nobita | ||
7 | Paid motor expenses by cash | ||
8 | Nobita returned defective goods to the business | ||
9 | Nobita settled his account by cheque | ||
10 | Paid shop assistant’s salary by cheque | ||
11 | The owner withdrew cash for his personal use |
QUESTION 2
Show the effect of each of the transactions on the accounting equation
Jan 1 Started business with RM500 cash
3 Bought goods RM75 for cash
3 Bought goods RM120 on credit from Aman
8 Sold goods RM40 for cash
10 Returned goods RM25 to Aman
14 Bought stationery RM50 cash
15 Paid RM70 cash to Aman
20 Bought office furniture RM200 on credit from AS Enterprise
25 Sold goods RM100 on credit to Lim
31 Paid salary RM150 by cash
QUESTION 3
The transactions below were carried by Aishah Batik Enterprise in the month of November 2011
Nov 1 Started business with RM10,000 cash and a motor vehicle valued at RM5,000
2 Opened a bank account at CIMB and deposited RM6,000 cash
3 Bought machinery worth RM2000 and paid cash
4 Purchases batik for RM 1,500 in cash
7 Credit purchases of batik worth RM3,000 from Salmah
8 Cash sales RM500 to Vincent
10 Sold RM 3,500 worth of batik Lee Trading on credit
14 Credit sales RM4,000 to Shahid
20 Sent cheque for RM2,950 to Salmah being full settlement of the amount owed
to her
to her
23 Received a cheque from Lee Trading for all the amount due by him less 10% of
cash discount
cash discount
24 Shahid returned defective goods amounting to RM200
25 Bought stationery RM50 by cash
26 Paid rent amounting RM350 by cheque
28 Paid salary RM250 by cash
From the transactions:
i) Record in the appropriate accounts
ii) Prepare the trial balance
