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Question 2 Abang Sado set up a business selling fitness equipment. He put RM7,000 of his...

Question 2
Abang Sado set up a business selling fitness equipment. He put RM7,000 of his own money into a business bank account and in his first year of trading, the following transactions occurred.
1) Paid rent of shop for the period RM3,500
2) Purchased equipment (inventories) on credit RM5,000
3) Loan from bank RM1,000
4) Purchase of shop fittings (for cash) RM2,000
5) Sales of equipment: cash RM10,000
6) Sales of equipment: on credit RM2,500
7) Payment for trade payables (discount received RM50) RM4,950
8) Receipt from trade receivables (discout alowed RM20) RM2,480
9) Interest on loan (paid) RM100
10) Other expenses (all paid in cash) RM1,900
11) Drawings RM1,500
Prepare the ledger accounts for Abang Sado by opening up the following accounts and completing them:
• Cash at bank
• Capital
• Loan
• Purchases
• Trade payables
• Rent
• Shop fittings
• Sales
• Trade receivables
• Discount received
• Discount allowed
• Loan interest
• Other expenses
• Drawings


Solutions

Expert Solution

Answer to Question:

Cash at Bank
Particulars Amount(RM) Particulars Amount(RM)
To, Capital 7000 By, Rent 3500
To, Loan 1000 By,Shop Fitting 5000
To, Trade Receivable 2,480 By, Drawings 1500
To, Sales 10000 By, Other Expenses 1900
By, Loan Interest 100
By, Trade Payable 4950
By, bal c/d 3,530
20,480 20,480
Capital Loan
Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM)
To, Bal c/d 7,000 By,Cash at Bank 7000 To Bal c/d 1,000 By, Cash at Bank 1000
7,000 7,000 1,000 1,000
Purchases Trade Payables Rent
Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM)
To, Cash at Bank 4950 By, Purchases 5000
To, Trade Paybles 5000 By, P&L 5000 To, Discount Received 50 To, Cash at Bank 3500 By, P&L 3500
5,000 5,000 5,000 5,000 3,500 3,500
Shop Fittings Sales Trade Receivable
Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM)
By, Cash at Bank 10000
To, Cash at Bank 2000 By, Bal c/d 2000 To, P&L 12500 By, Trade Receivable 2500 To, Sales 2500 By, Cash at Bank 2480
By, Discount allowed 20
2,000 2,000 12,500 12,500 2,500 2,500
Discount Received Discount Allowed Loan Interest
Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM)
To, Cash at Bank 100 By, P&L 100
To, P&L 50 By, Trade Payable 50 To, Trade Receivable 20 By, P&L 20
50 50 20 20 100 100
Other Expenses Drawings
Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM) Particulars Amount(RM)
To, Cash at Bank 1900 By, P&L 1900 To, Cash at Bank 1500 By, P&L 1500
1,900 1,900 1,500 1,500

ekkarill92 answered 2 years ago
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