Question

Sani, a graduate from Universiti Putra Malaysia, started the Merchandise Company with RM50,000 cash on January 2019. Below are the one month transactions of his company.

1/1 Bought goods from A & Co. for RM10,000 cash.

2/1 Bought Goods for Cash 5,000

3/1 Bought Goods from B & Co. for cash 6,000

4/1 Purchased Goods from C & Co. on credit 8,000

4/1 Brought in RM60,000 Cash to business

5/1 Sold goods worth 8,000 to P

5/1 Bought furniture from Modern Furniture for 10,000

5/1 Purchased goods for cash 15,000

6/1 Purchased goods from B. Sen & Co for 30,000

6/1 Opened a bank account by depositing 16,000

6/1 Sold goods to Zahir Khan for 10,000

6/1 Bought machinery for 6,000 and payment made by cheque

6/1 Payment to B.Sen & Co by cheque 5,000

6/1 Interest paid through cheque 2,000

6/1 Sold goods for cash 10,000

7/1 Cash sales for 6,000

7/1 Sold goods to Q for cash 4,000

8/1 Sold goods to R on credit 8,000

10/1 Returned goods to A & Co. 2,000

15/1 Goods returned from P 1,000

15/1 Goods returned by Zahir Khan for 2,000

15/1 Withdrew from bank for personal use 3,000

18/1 Goods taken by the proprietor for personal use 1,000

19/1 Withdrew from bank for office expenses 10,000

20/1 Cheque received from Zahir Khan 5,000

20/1 Commission received by cheque 5,000

20/1 Bought furniture 10,000

25/1 Purchased machinery for cash 25,000

26/1 Bought computer from Intel & Co. 30,000

27/1 Cash sales 5,000

29/1 Cash purchases 6,000

30/1 Paid electricity bill for 100

31/1 Paid Salaries by Cheque RM7,000

31/1 Closing Stocks is valued using FIFO method worth RM30,000.

Required:

A. Record all transactions in appropriate journals.

B. Post all transactions to the appropriate T-accounts based on the journal prepared.

C. Prepare general ledger based on the journal prepared.

D. Transfer all the closing balance to Trial Balance (title, date, debit column, credit column, total amount in RM)

E. Prepare Statement of Financial Position and Statement of Profit or Loss based on the trial balance constructed.

Answer 1