Chp 2 - Debit & Credit Rules ( Yes or No)

The proprietor brought in a book shelf which worth RM300 as additional capital.

Journal Entry:

Dr. Capital RM300

Cr. Furniture and Fittings RM300

• Yes

• No

Bank overdraft is considered as Liability.

• Yes

• No

The owner bought a computer which worth RM3,000 from Ahmad Trading on credit.

Journal Entries:

Dr. Computer RM3,000

Cr. Account Payable - Ahmad Trading RM3,000

• Yes

• No

The items below are considered as Assets:

Inventory

Property

Machinery

Cash at Bank

• Yes

• No

Ali returned RM100 of faulty goods to Bernard.

In the books of Bernard, the journal entry should be:

Dr. Account Payable - Ali RM100

Cr. Returns Outwards RM100

• Yes

• No

Purchases is an Expenses.

• Yes

• No

According to the process of Bookkeeping, the following sequence is true:

Journal 👉 Ledger 👉 Trial Balance

• Yes

• No

The owner returned a photocopier which worth RM1,000 to the credit seller Rahmat.

Journal Entry:

Dr. Office Equipment RM1,000

Cr. Returns Outwards RM1,000

• Yes

• No

"Returns Inwards" is also know as "Sales Returns".

• Yes

• No

The owner withdrew RM100 goods for his kid as birthday present.

Journal Entry:

Dr. Drawings RM100

Cr. Purchases RM100

• Yes

• No