Professional Documents
Culture Documents
School
of
Business
ACCT1501
Accounting
and
Financial
Management
1A
Session
1
2013
TUTORIAL WEEK 4 Solutions to Tutorial Questions
Tutorial Questions:
DQ3. 5
Assets normally have a debit balance, whilst liabilities and equity normally have a credit
balance. Revenues have a credit balance, and expenses have a debit balance
Therefore, some examples of accounts that normally have a debit balance are:
Cash
Accounts receivable
Inventory
Furniture, fittings & fixtures
Land & buildings
Investments
Intangibles
Prepayments
Some liability accounts that normally have a credit balance are:
Accounts payable
Loan
Other payables (income tax, wages, etc.)
Revenue received in advance (unearned revenue)
Mortgage
Provisions
Some equity accounts that normally have a credit balance are:
Share capital
Retained profits
Reserves
Some revenue accounts that have a credit balance are:
Sales
Dividends received from investments
Other revenue
Some expense accounts that normally have a debit balance are:
Electricity expense
Income tax expense
Problem 3.12
1
Revenue
Sales
Interest
Revenue
2
Expense
Depreciation
(50%
*200,000*
20%)
Rent
Interest
(200,000*10%*50%)
COGS
Salaries
(10,000
+
3,000)
Problem 3.19
a. DR
Loan
from
shareholders
CR
Cash
b. DR
Cash
CR
Accounts
receivable
c. DR
Inventory
CR
Accounts
payable
$
70,000
8,000
78,000
20,000
4,000
10,000
30,000
13,000
77,000
10,000
10,000
11,240
11,240
5,320
5,320
d. DR
Cash
22,000
CR
Share
capital
issues
22,000
e. DR
Bank
overdraft
22,000
CR
Cash
22,000
f. DR
Land
52,000
CR
Cash
12,000
CR
Mortgage
40,000
g. DR
Equipment
31,900
CR
Notes
Payable
Current
13,900
CR
Notes
Payable
Non
Current
18,000
31
000
83
762
13
900
12
665
18
322
159
649
18
000
253
734
67
674
90
000
429
408
77
000
97
618
174
618
763
675