Question $2($CLO $2)$

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:

B$.$

Transactions Effect Double entry

Cash sales Asset increase Dr Cash A$/$C

Revenue increase Cr Sales A$/$C

Transactions Effect Double entry

$1.$ Bought fixtures and fittings for

the shop in cash RM$30,000.$ fixtures and fittings increase

cash decrease Dr Fixtures & Fittings Account

Cr Cash

$2.$ Paid rent RM$1,200$ for the shop

in cash Rent expanses paid

Cash decrease Dr Rent

Cr Cash

$3.$The owner transferred a

computer from the house to the business worth RM$5,000.$ Capital increase

Assest increase Dr Drawings

Cr Computer

$4.$ A loan of RM$2,000$ is received in

cash from Salwa. Cash increase by RM$2,000$

Loan decrease by RM$2,000$ Dr Cash

Cr Loan from Salwa

$5.$ Sold goods on credit to Ali for

RM$10,000.$ Sales increase

Account receivable Debtors increase RM$10,000$ Dr Ali

Cr Sales

$6.$ Purchased goods on credit

RM$4,500$ from Abu. Purchases increase

Abu liability increase Dr Purchase

Cr Abu

$7.$ Paid Abu in cash. Abu decrease

cash decrease Dr Abu

Cr Cash

$8.$ Ali returned goods to the

company worth $1,000.$ Ali decrease

sales returns increase Dr Sales return

Cr Ali

$9.$ Paid carriage outwards by

cheque amounting to RM $500.$ Carriage outwards expense increase and bank balance decrease by RM$500$ Dr Carriage Outwards

Cr Bank

$10.$ Received sales commission

from ABC company RM$3,000$ by cheque. Bank account increase and sales commission revenue increase Dr Bank

Cr Sales commission

$(10$ marks$)$

B$.$ State the above transactions in the appropriate journal $($general journal, sales journal, purchase journal, return inward journal, return outward journal$)$