Question 2

Identify the Assets, Expenses, Liabilities, Revenue and Owner Equity in below Items.

Saloon chairs

Hair dryers and other equipment

Inventories

Cash at bank

Cash in hand

Utilities

Sales

Commission received

Bank overdraft

Loan from Agrobank

Capital

(Total: 11 marks)

Question 3

Show the effects upon assets, liabilities, owners equity, revenue and expenses by using the

format given below.

Example:	Transactions	Effect
	Paid salary by cheque RM2,000	Increase expenses Decrease assets

Tipah sets up Tulip Trading with cash at bank RM8,000 and motor vehicle RM10,000.

Cash sales to Baba amounted to RM5,000.

The proprietor uses the business cheque RM2,000 to pay for his house rental.

Took out RM5,000 of cash from the bank to pay salaries.

Paid audit fees RM6,000 by cheque.

Cash discount allowed to customer amounted to RM300.

Purchase land for use as a parking lot, paying by cheque RM45,000.

Received dividend by cheque from Amanah Saham Rakyat RM3,000.

Bought goods on Raju Trading RM1,500 on credit.

(Total: 9 Mark)