b) Encik Adrian commenced his tax firm ABC Services on 1 January 2023.
Date Transactions
January 1
- Adrian, the owner of ABC Services, contributed RM100,000 to his company.
- ABC Services provides consulting services and bills the client RM8,000, which will be paid in 30 days.
- ABC Services purchases office supplies on credit for RM500.
- ABC Services pays RM2,000 in cash for rent expenses for the month.
- ABC Services accrues RM3,000 in salaries expenses at the end of the month.
- ABC Services borrowed cash RM500,000 from OUMB Bank
Analyze all the above transactions by determining which accounts are affected, whether they are increased or decreased, and whether they need to be debited or credited. Refer to the example given:
Example: On 1 January, Ali purchased equipment by paying cash of RM20,000
Date Accounts Affected Increase/(Decrease) Double entry rules (Debit/Credit)
Equipment Increase Debit
Cash Decrease Credit