1. On 15 May 2015, Ahmad started a printing business. Transactions made during May are...
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Accounting
1. On 15 May 2015, Ahmad started a printing business. Transactions made during May are as follows: i. Invested RM20,000 in cash to start a printing business on May 1. ii. Purchased printing supplies for RM1,200 in cash. iii. Received cash for services performed, RM6,000. iv. Received a bill from College News for RM300 for advertising in the campus newspaper. v. Paid creditors, RM975. vi. Billed customer RM2,500 for services performed. vii. Paid RM900 for vehicle expenses. viii. Paid salaries of RM1,500 to workers. IX. Ahmad withdrew RM900 from the business for living expenses. X. Paid RM300 to College News for advertising that was previously billed in Transaction iv. Determine the effect of each transaction above on the accounting equation. Example for Question 1.b.(i) is given below. Cash Supplies Accounts Receivable Accounts Payable Owner's Equity +20,000 +20,000 (Capital)
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