Question

Question 1:

Menara Wealth Management involved the following transactions during September 2020, the first month of its operation:

Date	Transactions
September 1	Started a financial planning services company by investing RM150,000 cash and office equipment of RM50,000.
2	Purchased RM12,000 of office equipment by cash.
3	Purchased RM3,000 of office supplies on credit.
4	Completed service for a client and received a payment of RM9,000 cash.
8	Completed service for Syarikat Bizara on credit amounted to RM17,000.
10	Paid the supplier for the office supplies purchased on 3 September.
14	Paid RM9,600 being the annual premium for an insurance policy.
18	Received payment in full from Syarikat Bizara for the service completed on 8 September.
27	Owner withdrew RM6,500 cash from the company for personal expenses.
30	Paid RM1,750 cash for the utility bills in September.
31	Received RM20,000 cash from a client for a financial service to be rendered next year.

           

Required:

1. Prepare journal entries to record all of the above transactions.

(5.75)

2. Post the journal entries to the relevant three column ledgers.

(6)

3. Prepare the trial balance as at 30 September 2020.

(2.75)

Answer 1

1)

	MENARA WEALTH MANAGEMENT
	Journal entries
Date	Particular	Debit($)	Credit($)
Sep-01	Cash	150000
	Office equipment	50000
	To capital		200000
Sep-02	Office equipment	12000
	To cash		12000
	( To record equipment purchased)
Sep-03	Office supplies	3000
	To accounts payable		3000
	( To record purchase office supplies on credit)
Sep-04	Cash	9000
	To service revenue		9000
	( To record service revenue)
Sep-08	Accounts receivable	17000
	To service revenue		17000
	( To record service revenue)
Sep-10	Accounts payable	3000
	To cash		3000
	( To record cash paid to creditor)
Sep-14	Insurance expenses	9600
	To cash		9600
	( To record inusrance expenses)
Sep-18	Cash	17000
	To accounts receivable		17000
	( To record cash received from debtor)
Sep-27	Drawings	6500
	To cash		6500
	( To record drawings)
Sep-30	Utility expenses	1750
	To cash		1750
	( To record paid utility bills)
Sep-31	Cash	20000
	To unearned revenue		20000
	( To record unearned revenue)

2)

Cash
Particular	Debit($)	Credit($)
capital	150000
equipment office		12000
Service revenue	9000
accounts payable		3000
Insurance expenses		9600
Accounts receivable	17000
Drawings		6500
Utlity expenses		1750
Unearned revenue	20000
Balance	163150
Office equipment
Particular	Debit($)	Credit($)
Capital	50000
Cash	12000
Balance	62000
Accounts payable
Particular	Debit($)	Credit($)
office supplies		3000
Cash	3000
Accounts receivable
Particular	Debit($)	Credit($)
Service revenue	17000
Cash		17000
Service revenue
Particular	Debit($)	Credit($)
Cash	9000
Accounts receivable	17000
Balance	26000
Office supplies
Particular	Debit($)	Credit($)
Accounts payable	3000
Insurance
Particular	Debit($)	Credit($)
Cash	9600
Drawings
Particular	Debit($)	Credit($)
Cash	6500
Utility
Particular	Debit($)	Credit($)
Cash	1750

3)

MENARA WEALTH MANAGEMENT
Trial balance
Particular	Debit($)	Credit($)
Cash	163150
office equipment	62000
Office supplies	3000
Accounts receivable	0
Capital		200000
Accounts payable		0
Unearned revenue		20000
Service revenue		26000
Insurance expenses	9600
Utility expenses	1750
Drawing	6500
Total	246000	246000