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    Tutorial 05

    Uploaded by

    Janidu Kavishka
    The document provides instructions and examples for recording transactions using an expanded accounting equation across four activities. The transactions include investments, purchases and sales of assets, revenues, expenses, and adjustments. The expanded accounting equation tracks changes in assets, liabilities, owner's equity, revenues and expenses.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Tutorial 05

    Uploaded by

    Janidu Kavishka
    23 views3 pages
    The document provides instructions and examples for recording transactions using an expanded accounting equation across four activities. The transactions include investments, purchases and sales of assets, revenues, expenses, and adjustments. The expanded accounting equation tracks changes in assets, liabilities, owner's equity, revenues and expenses.

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    © © All Rights Reserved

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    The document provides instructions and examples for recording transactions using an expanded accounting equation across four activities. The transactions include investments, purchases and sales of assets, revenues, expenses, and adjustments. The expanded accounting equation tracks changes in assets, liabilities, owner's equity, revenues and expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views3 pages

    Tutorial 05

    Uploaded by

    Janidu Kavishka
    The document provides instructions and examples for recording transactions using an expanded accounting equation across four activities. The transactions include investments, purchases and sales of assets, revenues, expenses, and adjustments. The expanded accounting equation tracks changes in assets, liabilities, owner's equity, revenues and expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Tutorial 05

    Expanded Accounting Equation

    Activity 01

    Record following transactions in the expanded accounting equation.

    1. Started the business with the owner investing 100,000 cash, 150,000 worth land and 50,000

    worth computers.

    2. Purchased office furniture for 15,000 from Arpico Ltd by paying 10,000 cash and putting the

    remaining balance on credit.

    3. Purchased office furniture by paying 18,000 worth cheques.

    4. Purchase on credit basis Rs. 20,000.

    5. Sales on credit basis Rs. 25,000.

    6. Provide services for Rs. 7,000.

    7. Electricity bill payment Rs. 5,000.

    8. Accrued water bill payment Rs. 2,000.

    9. Salary for staff Rs. 25,000.

    10. Additional other income earned Rs. 30,000.

    Activity 02

    Record following transactions in the expanded accounting equation and show the totals of each
    component of the equation.

    1. Amal invested Rs. 500,00 and start up a company.

    2. He obtained a loan Rs. 250,000 from a bank

    3. Amal purchased furniture for Rs. 50,000 and a Motor vehicle for 75,000
    4. Purchase goods on credit basis Rs. 25,000 from Narmada

    5. Goods worth Rs. 10,000 has returned to Narmada due to damage.

    6. Sales on credit basis Rs. 30,000 to Gishan

    8. Cash drawings Rs. 5,000

    9. Paid salary Rs. 30,000

    10. Earned additional income of Rs. 10,000

    11. Receivable interest income Rs. 20,000

    12. Paid interest for bank loan obtained Rs. 12,500

    Activity 03

    ABC company was a small-scale enterprise which had 6 employees. They were into

    manufacturing shoes. Following transactions took place in the month of May 2020.

    1. Owner invested Rs. 500,000 to the business

    2. Purchased goods worth Rs. 10,000 on credit.

    3. Sold goods for Rs. 20,000 on cash

    4. Rs. 2000 cash received from debtors was deposited in the bank

    5. The company transfer money from bank to employees as monthly salary payment Rs.

    1000 each

    6. Depreciation on machine amounting to Rs. 10,000 at 10 % p.a

    7. Revaluation of building from Rs. 152,000 to Rs. 154,000.

    8. A debtor gave an equipment to settle his account worth Rs. 1000

    9. Brought good on credit basis Rs. 20,000.

    10. Company received a cash discount of 10% for early settlement of above 20,000.
    11. Purchased a machine for Rs. 200,000. ¾ of the machine was paid at the moment of

    purchase and the rest is not yet paid.

    You are requiring to,

    Record these transactions in the expanded accounting equation using the following format.

    Activity 04

    Following transactions took place during the first month of April 2021 in Amalya (Pvt) Ltd.
    Record these transaction using the expanded accounting equation.

    1. Owner invested Rs. 700,000 to the business.

    2. Purchased goods on cash worth Rs. 16,000 for resale.

    3. The business paid Rs.20,000 as insurance premium during the first month. The

    monthly insurance premium is Rs.10,000.

    4. Madura has taken Rs. 6,000 worth of goods out the goods purchased for sale, for his

    personal use.

    5. Purchased goods worth Rs. 50,000 for resale on credit

    6. Paid monthly electricity bill Rs.5,000

    7. Received rent income of Rs. 16,000

    8. Bad debts Rs. 3000

    9. Debtors paid cash Rs. 10,000

    10. Company settled its creditors Rs. 15,000

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