Question

QUESTION 1

Abang Berhad, located in Jitra, Kedah provides automobile repair service. Abang Berhad conducts the following business activities for the month of February 2020.

Date	Description
February 1	Issued invoice of RM40,000 to Orang Berhad for repair services rendered for its fleets of cars.
February 4	Received quotation of RM25,000 for office supplies.
February 8	Purchased office supplies of RM15,000 on account from Boniface Berhad
February 12	Received RM30,000 from Orang Berhad representing 75% payment of amount owned on February 1
February 15	Received cash of RM10,000 from Ikan Berhad for service provided.
February 20	Paid Boniface Berhad in settlement of office supplies purchased on February 8.
February 25	Received invoice of RM1,000 from Dan Medical Center for his wife medical expenses.
February 26	Office supplies consumed during the amount to 12,000
February 28	Paid staff salary of RM10,000 and electricity bill of RM500.

REQUIRED:

(a)    Show the effect of EACH TRANSACTION on the accounting equation using the following format;

         Cash + Account Receivable + Supplies = Account Payable + Equity  

Answer 1

a.)										Amount RM
	Date	Cash	+	Account Receivable	+	Supplies	=	Accounts Payable	+	Equity
	February .1			40,000						40,000
	February .4 - No Entry
	February .8					15,000		15,000
	February .12	30,000		-30,000
	February .15	10,000								10,000
	February .20	-15,000						-15,000
	February .25- No Entry
	February .26					-12,000				-12,000
	February .28	-10,500								-10,500
	Balance	14,500	+	10,000	+	3,000	=	-	+	27,500