Question

Cik Halimah is an entrepreneur who owned HD Cleaning Services Enterprise (HDCSE). Cik Halimah appointed you to manage the accounting records. You have been asked to complete part of the accounting cycle as she would apply for a bank loan. The following transactions had taken place in the first month (January 2020) of her business operation. 1 January The following assets were contributed by Cik Halimah into the business: Cash RM50,000 Furniture and Fitting RM40,000 Office Equipment RM14,000 2 Purchased office supplies from JD Enterprise for RM600 cash. 6 Hired a part time worker to assist Cik Halimah with a salary of RM1,200 per month. 8 Paid insurance premium for six (6) months period for RM2,500 cash. 11 Performed cleaning services to her customers and received RM10,000 cash. 13 Purchased a van for RM25,000 by paying RM14,000 cash and the remaining balance was on account. 16 Cik Halimah used RM5,500 of HDCSE’s money for her vacation. 17 Paid RM4,000 for the transaction on 13 January. 22 Paid RM1,500 for utility bills. 27 Performed services to customers of RM15,000 and received RM7,000 cash. The remaining balance will be received in February 2020. 28 One of the customers paid HDCSE of RM10,000 for the services to be performed in February 2020. 30 Paid salary for RM1,200. REQUIRED: (a) Record the journal entry/entries for the above transactions during the month of January 2020. (Explanation is not required). (b) Post all relevant cash journal entries to the Cash Account ledger. Determine the Cash Account balance after all postings are completed.

Answer 1

(a) Journal Entry for the month of January, 2020
		RM	RM
Jan-01	Cash	50000
	Furniture & Fixtures	40000
	Office & Equipment	14000
	To Capital		104000
Jan-02	Office Supplies	600
	To Cash		600
Jan-06	Only hired not yet salary incurred
	or paid. So no journal require
Jan-08	Insurance Expenses	417
	Prepaid Insutrance	2083
	To Cash		2500
Jan-11	Cash	10000
	To Cleaning Service Revenue		10000
Jan-13	Van	25000
	To Cash		14000
	To Accounts Payable		11000
Jan-16	Drawing	5500
	To Cash		5500
Jan-17	Accounts Payable	4000
	To Cash		4000
Jan-22	Utility Expenses	1500
	To Cash		1500
Jan-27	Cash	7000
	Accounts Receivable	8000
	To Cleaning Service Revenue		15000
Jan-28	Cash	10000
	To Deferred Revenue		10000
Jan-30	Salary	1200
	To Cash		1200
(b)	Cash Account
	To Capital	50,000	By Office Supplies	600
	To Cleaning Service Revenue	10,000	By Insurance Expense	2,500
	To Cleaning Service Revenue	7,000	By Van	14,000
	To Deferred Revenue	10,000	By Drawing	5,500
			By Accounts Paayable	4,000
			By Utilities Expenses	1,500
			By Salary	1,200
			By Balance c/d	47,700
		77,000		77,000