Question

Qaseh Enterprise commenced business on 22 February 2019. A year later, the following financial transactions occurred during the month of February 2020:

February 1 Owner contributed further cash into the business bank account amounting

RM60,000.

February 2 Hired Laila and Majnoon as staff and each of them is entitled a monthly

salary of RM1,200.

February 3 Bought goods on credit from Aminah Awang Bhd worth RM3,000.

February 5 Cash sales, paid directly into the bank account worth RM1,900.

February 8 Bought goods from Jaya Trading worth RM500 by cash.

February 10 Return faulty goods to Aminah Awang Bhd amounting RM300.

February 15 Purchased a computer worth RM5,500 from Cempaka Computer Center. An amount of RM2,000 was paid by cheque immediately. The remaining balance is to be paid by installment.

February 16 Paid RM200 cash to JT Courier for courier service.

Answer the questions using the format given below:

Example      Date       Transactions      Effects   

Required:

a. i. Identify the effects (increase or decrease) for each of the transaction above on

assets, liabilities, capital, revenue or expenses.

Answer 1

DATE	TRANSACTIONS	EFFECT
February 1	Owner contributed further cash into the business bank account amounting RM60,000	It will increase the capital as well as the assets.
February 2	Hired Laila and Majnoon as staff and each of them is entitled a monthly salary of RM1,200	It will increase the expenses and will reduce the assets.
February 3	Bought goods on credit from Aminah Awang Bhd worth RM3,000	It will increase the assets as well as the liabilities.
February 5	Cash Sales, paid directly into the bank account worth RM1,900	It will increase the revenue and will reduce the assets.
February 8	Bought goods from Jaya Trading worth RM500 by cash	It will have no effect.
February 10	Return faulty goods to Aminah Awang Bhd amounting RM300	It will reduce the liabilities as well as the assets.
February 15	Purchased a computer worth RM5,500 from Cempaka Computer center. An amount of RM2000 was paid by cheque immediately. The remaining balance is to be paid by installment.	It will increase the assets as well as liabilities.
February 16	Paid RM200 cash to JT Courier for courier service	It will increase expense and will reduce assets.