Below are the balance sheet items of Arius Cleaning Services for the month ended January 2021. Balance sheet item RM Assets 17,000 Liabilities ? Owner's Equity 14,800 During the month, the company's accountant recorded the following transactions: 1. Company purchased office equipment for cash amounting RM750. 2. The amount owing amounting RM200 was paid using cheque to trade payable, Mr Alle. 3. Mr Lee, the owner of the business invested a further RM2,000 cash in the business. 4. An additional motor vehicle was purchased on credit from Volvo Motors for RM4,000. Required: Summarised the above effects on the accounting equation based on the provided format. Assets = Liabilities + Owner's Equity Example: Beginning 10,000 2,000 8,000 Received RM350 cash from trade receivable +350 - 350 10,000 2,000 8,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Below are the balance sheet items of Arius Cleaning Services for the month ended
January 2021.
Balance sheet item
RM
Assets
17,000
Liabilities
?
Owner's Equity
14,800
During the month, the company's accountant recorded the following transactions:
1. Company purchased office equipment for cash amounting RM750.
2.
The amount owing amounting RM200 was paid using cheque to trade payable, Mr
Alle.
3. Mr Lee, the owner of the business invested a further RM2,000 cash in the business.
4. An additional motor vehicle was purchased on credit from Volvo Motors for
RM4,000.
Required:
Summarised the above effects on the accounting equation based on the provided format.
Assets =
Liabilities
+
Owner's Equity
Example:
Beginning 10,000
2,000
8,000
Received RM350 cash from trade
receivable
+350
- 350
10,000
2,000
8,000
Transcribed Image Text:Below are the balance sheet items of Arius Cleaning Services for the month ended January 2021. Balance sheet item RM Assets 17,000 Liabilities ? Owner's Equity 14,800 During the month, the company's accountant recorded the following transactions: 1. Company purchased office equipment for cash amounting RM750. 2. The amount owing amounting RM200 was paid using cheque to trade payable, Mr Alle. 3. Mr Lee, the owner of the business invested a further RM2,000 cash in the business. 4. An additional motor vehicle was purchased on credit from Volvo Motors for RM4,000. Required: Summarised the above effects on the accounting equation based on the provided format. Assets = Liabilities + Owner's Equity Example: Beginning 10,000 2,000 8,000 Received RM350 cash from trade receivable +350 - 350 10,000 2,000 8,000
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