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Provide your comment about the accounting treatment for additional investment made by Ruby on 31st January 2019.

Provide your comment about the accounting treatment for additional investment made by Ruby on 31st January 2019.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Provide your comment about the accounting treatment for additional investment made by Ruby on 31st January 2019.

Ruby, opens her own law office, Ruby Associates (RA) which started the operation on 1st January 2019. RA operates in Johor Baharu, Johor, Malaysia. On 1ª January 2019, Ruby introduced cash of RM155,000, an brought in her personal equipment that cost RM17,000 and motor vehicle at the cost RM45,000 for business use. During the month, RA earned revenue RM15,080 by cash from the services rendered. RA had paid the following expenses by cash: RM Salaries 5,000 3,200 1,500 Rent Stationeries Trade creditors/ Accounts payable RM3,700 was identified by end of the month. On 31st January 2019, Ruby introduced RM10,000 for additional investment. She recorded this transaction as an increase cash and increase in revenue.
Transcribed Image Text:Ruby, opens her own law office, Ruby Associates (RA) which started the operation on 1st January 2019. RA operates in Johor Baharu, Johor, Malaysia. On 1ª January 2019, Ruby introduced cash of RM155,000, an brought in her personal equipment that cost RM17,000 and motor vehicle at the cost RM45,000 for business use. During the month, RA earned revenue RM15,080 by cash from the services rendered. RA had paid the following expenses by cash: RM Salaries 5,000 3,200 1,500 Rent Stationeries Trade creditors/ Accounts payable RM3,700 was identified by end of the month. On 31st January 2019, Ruby introduced RM10,000 for additional investment. She recorded this transaction as an increase cash and increase in revenue.
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