Professional Documents
Culture Documents
Tutorial 3 Financial Accounting Framework 1
Tutorial 3 Financial Accounting Framework 1
Tutorial 3 Financial Accounting Framework 1
TUTORIAL 3
FINANCIAL ACCOUNTING FRAMEWORK 1
Question 1
State whether the following are fixed asset, current asset, owner’s equity, long term liability,
current liability, revenue or expenses
a. Premises
b. Long term loan
c. Insurance expense
d. Inventory
e. Cash in hand
f. Account receivables
g. Trade creditors
h. Fixtures and fittings
i. Capital
j. Machinery
Question 2
Jack Malai established a tuition centre on February 1 and competed the following transactions in
February:
(a) Opened a business a bank account with RM10,000 cash.
(b) Paid office and equipment rent for February, RM3,000.
(c) Purchased supplies on credit, RM1,850.
(d) Received cash from tuition fees earned, RM14,500.
(e) Paid utilities expenses for the month, RM1,560 and miscellaneous expenses, RM500.
(f) Paid teaches and office salaries, RM8,000.
(g) The cost of supplies used was RM1,300.
(h) Billed the students for fees earned, RM6,700.
(i) Withdrew cash for personal use, RM1,500.
Required:
With appropriate notation at the right of each transaction, indicate the nature of each increase and
decrease in the owner’s equity by following below’s example:
Below are the transactions at the beginning of the business for Ali Enterprise. Show the effect
related to the accounting equation. Show the effect to the specific type of item under each
categories of the equation. i.e assets – fixed asset, cash, debtors, etc.
Question 4
Draw up Kit Kat’s Statement of financial position as at 31 December 2016 from the following
and calculate how much profit or loss earned by the Kit Kat.
RM
Capital 30,000
Cash in hand 16,500
Loan from bank 15,000
Account receivable 8,000
Account payable 2,000
Inventory 8,500
Fixtures and fittings 15,000