Tutorial 1

Name: MUAADH MOHAMMED A. AL-YAZIDI. TP071921

Here's the classification of each item into assets, liabilities, owner's equity/capital, revenue,
and expenses:
Assets:
1. Stock/Inventory
2. Machinery
3. Debtors
4. Capital
5. Purchase of printer office
6. Motor vehicle
7. Cash at bank
Liabilities:
1. Creditors
2. The amount owed to the bank
Owner's Equity/Capital:
1. Capital
2. Drawings
Revenue:
1. Discount Received
2. Rent received
3. Commission received
4. Sales
Expenses:
1. Commission Paid
2. Purchases
3. Net Profit
4. Rates and taxes
5. Postage
6. Donation to charity
 7. Advertising
8. Bank interest paid
9. Office salaries
Note: The item "Net Profit" is typically considered a part of the owner's equity/capital section
on the balance sheet, but it represents the net result of revenue and expenses.

The accounting equation is as follows:

Assets = Liabilities + Owner's Equity/Capital

a) To calculate Julia's capital as of December 31, 2019, we need to subtract the liabilities
from the assets:

Julia's Capital (December 31, 2019) = Assets - Liabilities

= RM760,000 - RM240,000
= RM520,000

b) To calculate Julia's capital as of December 31, 2020, assuming an increase in assets by

RM120,000 and an increase in liabilities by RM72,000 during 2020:

Assets (December 31, 2020) = Assets (December 31, 2019) + Increase in Assets
= RM760,000 + RM120,000
= RM880,000

Liabilities (December 31, 2020) = Liabilities (December 31, 2019) + Increase in Liabilities
= RM240,000 + RM72,000
= RM312,000

Julia's Capital (December 31, 2020) = Assets (December 31, 2020) - Liabilities (December
31, 2020)
= RM880,000 - RM312,000
= RM568,000

c) To calculate Julia's capital as of December 31, 2020, assuming a decrease in assets by

RM60,000 and an increase in liabilities by RM21,600 during 2020:

Assets (December 31, 2020) = Assets (December 31, 2019) - Decrease in Assets
= RM760,000 - RM60,000
= RM700,000

Liabilities (December 31, 2020) = Liabilities (December 31, 2019) + Increase in Liabilities
= RM240,000 + RM21,600
= RM261,600

Julia's Capital (December 31, 2020) = Assets (December 31, 2020) - Liabilities (December
31, 2020)
= RM700,000 - RM261,600
= RM438,400