Accounting Equation

Asset = Liabilities + Owner’s equity

A L C+R–E–D
• 5 Jan - Mr Gan (owner) invested RM3,000
cash and brought a vehicle value at RM50,000
into a business.

Date Asset = Liabilities + Owner’s equity

5 Jan +50,000 (Vehicle) 53,000 (capital)

+ 3,000 (cash)
53,000 0 53,000
• On Jan 11, Purchased office table worth
RM500 by cheque

Date Asset = Liabilities + Owner’s equity

11 Jan + 500 (office table)

- 500 ( Bank )
• On Jan 15, Purchased wardrobe worth
RM1,200 on credit.

Date Asset = Liabilities + Owner’s

equity
15 Jan + 1,200 ( wardrobe) + 1,200 ( Account
Payable)
• 18 jan – Paid supplier RM1,000 by cheques.

Date Asset = Liabilities + Owner’s

equity
18 Jan - 1,000 (bank) - 1,000 ( Account payable)
• Jan 20 – Received cheque for RM2,000 from
bank loan.
Date Asset = Liabilities + Owner’s equity
20 Jan + 2,000 (bank) + 2,000 (Account
Payable)
• 22 Jan - Owner made additional contribution
to capital by depositing a cheque for RM4,000
and brought in table worth RM2,000

Date Asset = Liabilities + Owner’s equity

22 Jan + 4,000 ( Bank) +6,000 (Capital)

+ 2,000 ( Table)
• 25 Jan - Owner paid shop rental of RM500 by
cheque

Date Asset = Liabilities + Owner’s equity

25 Jan -500 (Bank) - 500 (Shop rental)
• 28 Jan - Received cheque for RM400 for
dividend on investment.
Date Asset = Liabilities + Owner’s equity
28 Jan + 400 (bank) + 400 ( dividend receive)
• 29 Jan - The owner withdrew RM100 cash
from bank for self use.
Date Asset = Liabilities + Owner’s equity
29 Jan -100 (bank) - 100 (drawing)
 Date Asset = Liabilities + Owner’s equity
5 Jan + 50,000 (Vehicle) 53,000 (capital)
+ 3,000 (cash)
11 Jan + 500 (office table)
- 500 ( Bank )
15 Jan + 1,200 ( wordrobe) + 1,200 ( AP)
18 Jan - 1,000 (bank) - 1,000 ( AP)
20 Jan + 2,000 (bank) + 2,000 ( AP)
22 Jan + 4,000 ( Bank) +6,000 (Capital)
+ 2,000 ( Table)
25 Jan -500 (Bank) - 500 (Shop rental)
28 Jan + 400 (bank) + 400 ( dividend
receive)
29 Jan -100 (cash) - 100 (drawing)
61,000 = 2200 + 58,800
61,000 = 61,000