BAAB1014 BUSINESS ACCOUNTING

Assignment Guidelines and Rubrics

Quiz 1 – 5%
Learning outcomes
1. Explain the basic concepts of accounting, bookkeeping and cost accounting
terminology.
2. Systematically recording business transactions in appropriate accounting
records.
3. Prepare basic financial statements, management reports and various alternative
cost management system.

Instructions: Answer all questions.

Question 2

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

1. Saloon chairs
2. Hair dryers and other equipment
3. Inventories
4. Cash at bank
5. Cash in hand
6. Utilities
7. Sales
8. Commission received
9. Bank overdraft
10. Loan from Agrobank
11. Capital

(Total: 11 marks)
1
nswers :
Revenues = Sales/commission received
Expenses = Salary/utilities
Identify the Assets, Expenses,
Liabilities, Revenue and Owner Equity
in below Items
nswers :
Revenues = Sales/commission received
Expenses = Salary/utilities
Identify the Assets, Expenses,
Liabilities, Revenue and Owner Equity
in below Items
Answers:
Revenue = Sales/Commission Received
Expenses = Salaries/Utilities

Assets Liabilities Owner Equity

Saloon Chairs ¿ RM 32 , 000
Hair Dryers & Other
Equipment’s ¿ RM 8000
Cash at Bank ¿ RM 40,000
Cash in Hand¿ RM 6,600
Bank Overdraft ¿ RM 2000 Salary ¿ RM 18,000
Loan from AgroBank Utilities RM 8000
RM 20,000
Capital ¿ RM 60,000

Question 3

Show the effects upon assets, liabilities, owner’s equity, revenue and expenses by using the format
given below.

Transactions Effect
Example
Paid Salary By Cheque RM 2000 Increase expenses
Decrease assets
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I. Tipah sets up Tulip Trading with cash at bank RM8,000 and motor vehicle RM10,000.
ii. Cash sales to Baba amounted to RM5,000.
iii. The proprietor uses the business cheque RM2,000 to pay for his house rental. iv. Took out
RM5,000 of cash from the bank to pay salaries.
v. Paid audit fees RM6,000 by cheque.
vi. Cash discount allowed to customer amounted to RM300.
vii. Purchase land for use as a parking lot, paying by cheque RM45,000. viii. Received dividend by
cheque from Amanah Saham Rakyat RM3,000.
ix. Bought goods on Raju Trading RM1,500 on credit.

(Total: 9 Marks)

Answer:
No. Transactions Effects
Tipah sets up Tulip Trading Increase asset
1 with cash at bank RM8,000 and Increase capital
motor vehicle RM10,000
2 Cash sales to Baba amounted to Increase asset
RM5,000. Increase asset
3 The proprietor uses the business Increase asset
cheque RM2,000 to pay for his Increase capital
house rental.
4 Took out RM5,000 of cash from Increase expenses
the bank to pay salaries Decrease asset
5 Paid audit fees RM6,000 by Increase expenses
cheque Decrease asset
6 Cash discount allowed to Increase expenses
customer amounted to RM300. Decrease asset
7 Purchase land for use as a Increase asset
parking lot, paying by cheque Decrease asset
RM45,000.
8 Received dividend by cheque Increase asset
from Amanah Saham Rakyat Increase asset
RM3,000.
9 Bought goods on Raju Trading Increase asset
RM1,500 on credit Decrease asset

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