EXAMPLE Journal entry Dr Motor vehicle Cr Bank Transaction Effect Increase Asset Purchased a motor vehicle and paid by cheque Decrease Asset Transaction Started a business with cash and leasehold premises. Sold goods to AC Bhd on credit. Motor van repairs being paid by cash. Returned goods bought on credit to an account payable. Received commission revenue by cheque. Bought machinery and paid only half of the amount by cheque. Effect Journal entry 1 2 3 4 6
EXAMPLE Journal entry Dr Motor vehicle Cr Bank Transaction Effect Increase Asset Purchased a motor vehicle and paid by cheque Decrease Asset Transaction Started a business with cash and leasehold premises. Sold goods to AC Bhd on credit. Motor van repairs being paid by cash. Returned goods bought on credit to an account payable. Received commission revenue by cheque. Bought machinery and paid only half of the amount by cheque. Effect Journal entry 1 2 3 4 6
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ASSET | EXPENSES | LIABILITIES | CAPITAL | REVENUES | |
(i) | 67,500 | 85,700 | 50,500 | 53,700 | 49,000 |
(ii) | 92,000 | 7,000 | 8,000 | 21,000 | 70,000 |
(iii) | 112,000 | 85,000 | 200 | 171,000 | 25,800 |
(iv) | 7,900 | 2,250 | 3,200 | 2,750 | 4,200 |
(v) | 32,500 | 6,600 | 7,200 | 26,200 | 5,700 |
a) State the

Transcribed Image Text:EXAMPLE
Journal entry
Dr Motor vehicle
Cr Bank
Transaction
Effect
Increase Asset
Purchased a motor vehicle and paid by cheque
Decrease Asset
Transaction
Started a business with cash and leasehold premises.
Sold goods to AC Bhd on credit.
Motor van repairs being paid by cash.
Returned goods bought on credit to an account payable.
Received commission revenue by cheque.
Bought machinery and paid only half of the amount by cheque.
Effect
Journal entry
1
3
4
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