Zahrah opened a laundry shop, Clean Laundry Shop on 1 April 2020. The following transactions were recorded in the first month of the business: Date Transctions Apr 1 Zahrah started the business and invested RM41,000 in cash into the business. Apr 2 Bought a fax machine for RM500 by cash. Apr 5 Bought office equipment for RM5,000 from Quick Store. The laundry shop paid RM2,500 and the balance is on credit. Apr 6 Bought office furniture on credit from Furniture Dream for RM1,900. Apr 7 Paid rental expense of RM700 by cash. Apr 15 Paid RM200 by cash for telephone expense. Apr 20 Zahrah withdrew cash of RM1,500 from the business for personal use. Apr 21 Paid the amount owing to Furniture Dream of RM1,900 by cash. Apr 22 Received RM2,300 of cash from customers for the service rendered. You are required to: Analyse the effects of the above transactions on the accounting equations using the format given below: Assets = Liabilities + Owner’s Equity
Zahrah opened a laundry shop, Clean Laundry Shop on 1 April 2020. The following transactions were recorded in the first month of the business:
Date Transctions
Apr 1 Zahrah started the business and invested RM41,000 in cash into the business.
Apr 2 Bought a fax machine for RM500 by cash.
Apr 5 Bought office equipment for RM5,000 from Quick Store. The laundry shop paid RM2,500 and the balance is on credit.
Apr 6 Bought office furniture on credit from Furniture Dream for RM1,900.
Apr 7 Paid rental expense of RM700 by cash.
Apr 15 Paid RM200 by cash for telephone expense.
Apr 20 Zahrah withdrew cash of RM1,500 from the business for personal use.
Apr 21 Paid the amount owing to Furniture Dream of RM1,900 by cash.
Apr 22 Received RM2,300 of cash from customers for the service rendered.
You are required to:
Analyse the effects of the above transactions on the
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Liabilities |
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Owner’s Equity |
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