Question

MusqeemSdnBhd is a firm that offers business and investment consulting services. It is owned by Mr. Mustaqeem. The following transactions were completed on its first month of business operation:

Date	Description
January 1	Mr. Mustaqeem invested RM40,000 of his personal cash in a bank account under the company’s name. The cash will be used for business purposes.
3	Purchased office supplies on account, RM2,500.
5	Paid RM3,200 for the purchase of office furnitures.
7	Rendered a consulting service to AgrosSdnBhd on account, RM13,500.
11	Paid advertising expense, RM2,500.
15	Borrowed loan from BAC Bank, RM15,000.
19	Paid RM1,250 for the office supplies purchased on January 3.
23	Received cash from AgrosSdnBhd for service provided on January 7, RM13,500.
27	Withdrew cash RM550 for personal use.
31	Paid employee salaries, RM15,800.
31	Paid utilities expenses, RM500

REQUIRED:

(a)        Prepare the relevant journal entries to record the above transactions. Omit the         explanations.

(b)        Post all journal entries in (a) to the ledger.

(c)        Prepare a trial balance as at January 31 2020.

Answer 1

1

Date	Accounts and Explanation	Debit	Credit
1	cash A/c	11,000
	Capital A/c		11,000
2	Supplies A/c	8,200
	Accounts Payable A/c		8,200
5	Furiniture A/c	5,800
	cash A/c		5,800
7	Agro SDBHD A/c	13500
	Service Revenue		13500
11	Advertaisement A/c	2500
	cash A/c		2500
15	cash A/c	15000
	Bank Loan A/c		15000
19	Accounts Payable A/c	1250
	cash A/c		1250
23	cash A/c	13500
	Agro SDBHD A/c		13500
27	Drawings A/c	550
	cash A/c		550
31	Salaries A/c	15800
	cash A/c		15800
31	Utiility A/c	500
	cash A/c		500

2

Here posted multiple entry accounts

Cash A/c
Capital	11000	Furniture	5800
Bank Loan	15000	Advertainsement	2500
Agro	13500	Accounts Payable	1250
		Drwangs	550
		Salary	15800
		Utilty	500
		Balance	13100
	39500		39500
Capital A/c
		Cash	11000
Balance c/d	11000
	11000		11000
Accounts Payable
Cash	1250	Supplies	8200
Balamce c/d	6950
	8200		8200
Agro SDNBHD
Revenue	13500	Cash	13500
	13500		13500

3

Trial Balance
Cash	13100
Capital		11000
Supplies	8200
Accounts Payable		6950
Furniture	5800
Revenue		13500
Advertaisement	2500
Bank Loan		15000
Drwanings	550
Salary	15800
Utility	500
	46450	46450