1. Select from the following, the correct equation:
A. Assets = Expenses + Owner’s Equity
C. Expenses = Assets - Owner’s Equity
B. Owner’s Equity = Assets + Liabilities.
D. Assets = Owner’s Equity + Liabilities.
2. Which of the following is a liability?
A. Loan from Joe
B. Loan to Ron
C. Receivables for goods sold on credit
D. Motor vehicles
3 Given that a firm has the following, what is the amount of equity?
Assets $28,600
Trade Payables $3,000
Loan $4,000
A. $21,100
C. $32,400
B. $21,600
D. $35,600
4. A business had the following assets and liabilities.
$
Motor Vehicles
5,000
Inventory
16,000
Trade Receivables
4,000
Bank (Dr)
3,000
Trade Payables
11,000
The owner has now increased his capital in the business by $4,500. What is the capital
now?
A. $21,500
B. $28,000
C. $32,500
D. $43,500
5. What are assets?
A items that are expected to be turned into cash in the near future
B items that are owned by or owed to a business
C items that are owned by or owed by a business
D items that are purchased for long-term use by a business
6 Sharon purchases a supply of office paper on credit. How should this transaction be
recorded?
A.
B.
C.
D.
Debit
office equipment
supplier
stationery
supplier
Credit
supplier
office equipment
supplier
stationery
1
7. Why is a trial balance prepared?
A to calculate net profit
B to check the amount of the owner’s capital
C to check the arithmetical accuracy of the double entry
D to find out how much is owed to creditors
8. The following balances have been taken from a trader's books.
$
Inventory
20,000
Equipment
80,000
Account Receivables
60,000
Account Payable
35,000
Long term-loan from bank
20,000
Cash at bank
5,000
What is the total of the current assets?
A. $80,000
B. $85,000
C. $165,000
D. $220,000
9. Amal started a business introducing furniture worth RM100,000 and RM300,000 in
cash. Which of the following would be the correct accounting equation after
incorporating this transaction?
Assets = Capital + Liabilities
(1) 300,000 = 300,000 - 0
(2) 400,000 = 400,000 - 0
(3) 100,000 = 400,000 - 300,000
(4) 400,000 = 300,000 + 100,000
10. A business purchases a motor vehicle on credit. What is the effect of this?
A It increases fixed assets.
B It increases owner’s capital.
C It reduces net profit.
D It reduces the bank balance.
2
Question 1
Indicate each category of the following for Anna who owns a general store.
1) Fittings
2) Loan at HSBC bank
3) Inventory of Goods
4) Trade Payables
5) Land & Building
6) Carriage Outwards
7) Bank Overdraft
8) Stationery
9) Petty Cash
10) Rent received
11) Discount Allowed
12) Light & Heat
13) Carriage Inwards
14) Machinery
15) Discount Received
Question 2
The following details were taken from Carol’s business as at Jan 2019
a) Complete the following table showing which accounts to be debited & credited
Date
Jan 1
2
3
4
9
10
21
22
25
27
28
29
31
Particulars
Started firm with capital in bank of RM5,000
Transferred RM2,000 from bank to the cash
Bought goods on credit from Rachel RM750
Sold goods on credit to Debby RM1500
Bought a printer for RM200 direct debit
We return goods to Rachel RM50
Debby return some goods worth RM25
Received commission via credit transfer
RM100
Bought goods by cash RM1000
Bought display shelf on credit from Courts
Mammoth RM450
Paid electric bill(TNB) via direct debit RM50
Debby paid us RM400 by giro credit
We paid Rachel the balance outstanding by
internet transfer
b) Prepare the ledgers for all the necessary accounts
(Do in your own ledger book)
c) Prepare the Trial Balance as at that date
3
Debit
Credit