Question

On 1April2020, Adam Syaqif began a new business called Cepat Cetak Sdn. Bhd, which provides typing and printing services. The following is a list of transactions incurred by the business during the month of April 2020:
i)   Adam Syaqif contributed RM200,000 cash into the business.
ii)   Purchased a land and a small building for RM450,000. He paid RM165,000 cash and signed a note payable for the balance. The land was considered to be worth RM240,000 and the building to be RM210,000.
iii)   Purchased office equipment for RM30,000 from Amazing Interiors Sdn. Bhd. He paid RM17,000 cash and agreed to pay the balance within 60 days.
iv)   Purchased a motorcycle on credit for RM3,400 to be used for making deliveries to customers. He agreed to make payment to Motorex Sdn. Bhd. within 10 days.
v)   Paid in full the account payable to Motorex Sdn. Bhd.
vi)   Borrowed RM30,000 from Bank Kaya and signed a note payable due in six months’ time.

Based on the above information:
a)   Prepare the journal entries for all the above transactions.
(7.5 marks)
b)   Post all the relevant accounts to ledgers.
(7.5 marks)
c)   Prepare a trial balance as at 30 April 2020.

Answer 1

Journal Entries

S.no	Accoounts Titles and Explanation	Debit Amount (RM)	Credit Amount (RM)
1	Cash A/c Dr.	200,000
	To Owner's Capital A/c		200,000
2.	Land A/c Dr.	240,000
	Building A/c Dr.	210,000
	To Cash A/c		165,000
	To Notes Payable		285,000
3.	Office Equipment A/c Dr.	30,000
	To Cash A/c		17,000
	To Accoounts Payable		13,000
4.	Motorcycle A/c Dr.	3,400
	To Accounts Payable		3,400
5.	Accounts Payable A/c Dr.	3,400
	To Cash A/c		3,400
6	Cash A/c Dr.	30,000
	To bank loan A/c		30,000

Capital a/c

Particulars	Amount	Particulars	Amount
To balance c/d	2,00,000	By Cash A/c	2,00,00
Total	200,000	total	200000
		By balance b/d	2,00,000

Cash a/c

Particulars	Amount	Particulars	Amount
To owner's caputal a/c	2,00,000	By land and building	1,65,000
To Bank Loan	30,000	By office equipment	17,000
		By Accounts payable	3,400
		By balance c/d	44,600
Total	230,000	Total	230,000
To balance b/d	44,600

Accounts Payable A/c

Particulars	Amount	Particulars	Amount
To cash A/c	3,400	By office equipment	13,000
To balance c/d	13,000	By motorcycle A/c	3,400
total	16,400	total	16,400
		By balance b/d	13,000

Land and Building A/c

Particulars	Amount	Particulars	Amount
To Cash A/c	1,65,000	By balance c/d	450,000
To Notes Payable	285,000
total	450,000	total	450,000
to balance b/d	450,000

Office Equipment a/c

Particulars	Amount	Particulars	Amount
To Cash A/c	17,000	To balance c/d	30,000
To Accounts Payable	13,000
total	30,000	total	30,000
to balance b/d	30,000

Bank Loan a/c

Particulars	Amount	Particulars	Amount
To balance b/d	30,000	By Cash A/c	30,000
total	30,000	total	30,000
		By balance b/d	30,000

Notes Payable a/c

Particulars	Amount	Particulars	Amount
To balance c/d	285,000	By land and Building	285,000
total	285,000	total	285,000
		By balance b/d	285,000

Motorcycle A/c

Particulars	Amount	Particulars	Amount
To accounts payable	3,400	by balance c/d	3400
total	3400	total	3400
To balance b/d	3400

Trial Balance

Particulars	Debit Amount (RM)	Credit Amount (RM)
Capital A/c		2,00,000
Cash A/c	44,600
Accounts Payable A/c		13,000
Land and Building A/c	450,000
Office Equipment A/c	30,000
Bank :Loan A/c		30,000
Notes Payable		285,000
Motor Cycle A/c	3400
Total	528,000	528,000