introduction to accounting

4. Indicate in the column the effects of the transactions to assets, liabilities and capital (Increase / Decrease) Transactions Asset Liabilities Capital We pay creditor RM70 in cash Bought fixtures RM200 paying by cheque Bought goods on credit RM275 The proprietor introduce another RM500 cash into the firm e William lends the firm RM200 in cash A debtor pay us RM50 by cheque We return goods costing RM60 to a supplier whose bill we had not paid 5. For each of the transactions. indicate in the respective column the account's name affected: Transactions Asset Liabilities Capital Bought a motor van on credit RM500 Repaid by cash a loan owed to Smith RMI.000 C Bought goods RM150 paying by cheque The owner puts a further RM5.000 into the business e A debtor returns to us RM80 goods The owner takes out RMIOO cash for his personal use 8 Pay a creditor RM190 by cheque 6. Indicate in the following transactions, the effects (Increase / Decrease / No effects) on the accounting equation of the company: Transactions Asset Liabilities Capital The owner invests personal cash in the business. The company receives cash from a bank loan. C The company purchases equipment with its cash. d The owner contributes his/her personal truck to the business. e The company purchases a significant amount of supplies on credit The owner withdraws cash from the business for personal use. 8 The company repays the bank that had lent money to the company 8 The company purchases land by paying half in cash and signing a note payable for the other half