Principal of Accounting Quiz question paper chapter 1

Mr. Sigma established a business consultancy firm under the name Sigma Professional Services on April 1, 2026. The Statement of Financial Position of the business as at April 30, 2026, disclosed the following balances: | Assets, Liabilities and Equity | Amount (Tk.) | | :--------------------------- | :------------- | | Cash | 800,000 | | Accounts Receivable | 5,000 | | Office Supplies | 2,000 | | Office Equipment | 12,000 | | Accounts Payable | 7000 | | Owner's Capital | 812,000 | During May 2026, the following transactions took place: | Date | Transactions | | :----- | :-------------------------------------------------------------------------------------------------------------------------------------------------------- | | May 2 | The proprietor injected additional capital of Tk. 1,500,000 in cash into the business. | | May 4 | Purchased a land for Tk. 500,000 and paid the full amount in cash. | | May 6 | Acquired office equipment costing Tk. 350,000 by paying Tk. 150,000 in cash and issuing a note payable for the balance. | | May 8 | Rendered professional consulting services amounting to Tk. 20,000. Received Tk. 8,000 in cash and billed the remaining amount to clients. | | May 10 | Paid Tk. 84,000 for a one-year office insurance policy in advance. | | May 14 | Purchased office supplies for cash amounting to Tk. 30,000. | | May 16 | Provided consulting services and received Tk. 250,000 in cash. | | May 18 | Completed consultancy assignments on credit for Tk. 300,000. | | May 20 | Collected Tk. 180,000 from clients relating to the services rendered on account on May 18. | | May 20 | Obtained a bank loan of Tk. 600,000, which was deposited directly into the business bank account. | | May 20 | Paid office salaries amounting to Tk. 90,000. | | May 22 | Purchased a company vehicle for Tk. 450,000 cash. | | May 24 | Received Tk. 120,000 from customers for services to be performed in the future. | | May 28 | The owner withdrew Tk. 50,000 cash for personal purposes. | | May 30 | Collected an additional Tk. 2,000 from accounts receivable. | Requirement: Analyze the effects of business transactions on the accounting equation. CLO 3 [15]