THE ACCOUNTING EQUATION AND THE STATEMENT OF FINANCIAL POSITION

DOUBLE ENTRY SYSTEM FOR ASSETS, LIABILITIES AND CAPITAL

Dateline: $28$ Feb $2024$

QUESTION $1$

Ubaidi has the following items in his statement of financial position on $30$ Jan $2024$: Capital

RM$31,700$; Accounts payable RM$7,400$; Fixtures RM$9,600$; Car RM$12,300$; Inventory

RM$8,600$; Accounts receivable RM$4,100$; Cash at bank RM$1,600$; Cash in hand RM$2,900.$

During the first week of February $2024$

i$.$ He bought extra inventory for RM$1,100\mathrm{.}00$ on credit

ii$.$ One of the debtors paid him RM$450\mathrm{.}00$ by cheque

iii. He bought a computer by cheque for RM$610\mathrm{.}00$

You are required to draw up a statement of financial position as of $7$ February $2024$ after the

above transactions have been completed.

QUESTION $2$

Ubaidi is setting up a new business. As a start, he bought a van for RM$13,000,$ a transportable

market stall for RM$1,050,$ a computer for RM$450,$ and an inventory of goods for RM$8,000.$

Ubaidi did not pay in full for his goods inventory and still owes RM$3,000$ for them. He

borrowed RM$10,000$ from a friend. After the events just described, and before trading starts he

has RM$1,400$ cash in hand and RM$4,700$ in the bank. Calculate the amount of his capital.

QUESTION $3$

Write up the asset, liability, and capital accounts to record the following transactions in the

records of Ubaidi

$2023$

Jan

$1$ Started business with RM$62,000$ in the bank

$2$ Bought office fumiture by cheque RM$3,700$

$3$ Bought computers RM$1,710$ on credit from Computer Land Sdn$.$ Bhd$.$

$5$ Bought a van paying by cheque RM$9,800$

$8$ Sold some of office fumiture $-$ not suitable for the business $-$ for RM$450$ on credit to

Zikry Sdn$.$ Bhd$.$

Paid the amount owing to Computer Land Sdn$.$ Bhd$.$ by cheque

Received the amount due from Zikry Sdn$.$ Bhd$.$ RM$450$ by cheque

Bought machinery by cheque RM$310$