LET'S DRILL-ACCOUNTING BOOKS

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

                23           Received a cheque from Lee Trading for all the amount due by him less 10% of 
                               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