Hannah opens a retail wholesale store selling groceries and stationeries in her neighbourhood. She started her business on 1 December 2021 with a capital of RM80,000 in cash. On 2 December 2021, Hannah opened a bank account for the business with Al Bank and transferred RM60,000 cash of the business into the bank account. On the same day, she also contributed her old van costing RM30,000 into the business. On 10 December 2021, the business bought flour, granulated sugar and other essential goods RM25,000. The business also bought canned food and other baking materials for RM5,000. Both transactions were paid by cheque On 16 December 2021, the business sold flour, sugar and rice to customers and received RM5,000 cash for the sales. On the same di Hannah took some baking materials and groceries costing RM200 for her own used. On 18 December 2021, the business spent RMS on fuel and RM250 on repair expenses by cheque on the business van. In the advancement of the technology, Hannah decided to record all the business transactions on a computerised accounting system. Due to shortage of capital, the business had applied for. loan from a local bank. The application was approved on 20 December 2021 and the business received a cheque of RM20,000 which be used to purchase the computerised accounting system.
Hannah opens a retail wholesale store selling groceries and stationeries in her neighbourhood. She started her business on 1 December 2021 with a capital of RM80,000 in cash. On 2 December 2021, Hannah opened a bank account for the business with Al Bank and transferred RM60,000 cash of the business into the bank account. On the same day, she also contributed her old van costing RM30,000 into the business. On 10 December 2021, the business bought flour, granulated sugar and other essential goods RM25,000. The business also bought canned food and other baking materials for RM5,000. Both transactions were paid by cheque On 16 December 2021, the business sold flour, sugar and rice to customers and received RM5,000 cash for the sales. On the same di Hannah took some baking materials and groceries costing RM200 for her own used. On 18 December 2021, the business spent RMS on fuel and RM250 on repair expenses by cheque on the business van. In the advancement of the technology, Hannah decided to record all the business transactions on a computerised accounting system. Due to shortage of capital, the business had applied for. loan from a local bank. The application was approved on 20 December 2021 and the business received a cheque of RM20,000 which be used to purchase the computerised accounting system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hannah opens a retail wholesale store selling groceries and stationeries in her neighbourhood. She started her business on 1
December 2021 with a capital of RM80,000 in cash. On 2 December 2021, Hannah opened a bank account for the business with Al R.
Bank and transferred RM60,000 cash of the business into the bank account. On the same day, she also contributed her old van
costing RM30,000 into the business. On 10 December 2021, the business bought flour, granulated sugar and other essential goods f
RM25,000. The business also bought canned food and other baking materials for RM5,000. Both transactions were paid by cheque.
On 16 December 2021, the business sold flour, sugar and rice to customers and received RM5,000 cash for the sales. On the same day
Hannah took some baking materials and groceries costing RM200 for her own used. On 18 December 2021, the business spent RM50
on fuel and RM250 on repair expenses by cheque on the business van. In the advancement of the technology, Hannah decided to
record all the business transactions on a computerised accounting system. Due to shortage of capital, the business had applied for a
loan from a local bank. The application was approved on 20 December 2021 and the business received a cheque of RM20,000 which w
be used to purchase the computerised accounting system.
Required:
Analyse each of the trånsactions above on the accounting equation using the following format:
Example:
2 December Sales on credit amounting to RM5,000
Date
Assets
Liability
+ Owner's Equity
Capital
Drawings
+ Revenues
Expenses
+ 5,000
Dec 2 +5,000
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