Question

Qaseh Enterprise commenced business on 22 February 2019. A year later, the following financial transactions occurred during the month of February 2020:

February 1 Owner contributed further cash into the business bank account amounting

RM60,000.

February 2 Hired Laila and Majnoon as staff and each of them is entitled a monthly

salary of RM1,200.

February 3 Bought goods on credit from Aminah Awang Bhd worth RM3,000.

February 5 Cash sales, paid directly into the bank account worth RM1,900.

February 8 Bought goods from Jaya Trading worth RM500 by cash.

February 10 Return faulty goods to Aminah Awang Bhd amounting RM300.

February 15 Purchased a computer worth RM5,500 from Cempaka Computer Center. An amount of RM2,000 was paid by cheque immediately. The remaining balance is to be paid by installment.

February 16 Paid RM200 cash to JT Courier for courier service.

a. Prepare the double entry for each of the transactions above.

Answer 1

Journal entry / Double entry :

Date	Accounts title and explanation	Debit	Credit
Feb 1, 2020	Bank	60000
	Capital		60000
	(To record deposit made by owner)
Feb 2, 2020	No entry
Feb 3, 2020	Purchases	3000
	Accounts payable - Aminah awang bhd		3000
	(To record goods purchased made on credit)
Feb 5, 2020	Bank	1900
	Sales		1900
	(To record sales )
Feb 8, 2020	Purchases	500
	Cash		500
	(To record cash purchases)
Feb 10, 2020	Accounts payable - Aminah awang bhd	300
	Purchase returns		300
	(To record Return Of goods)
Feb 15, 2020	Computer	5500
	Bank		2000
	Cempaka computer center		3500
	(To record purchase of computer)
Feb 16, 2020	Courier expense	200
	Cash		200
	(To record payment to courier)

Note : For hiring Laila and Majnoon as staff on Feb 2, 2020 no entry is required because it is not a transaction. Entry would be recorded when the salary is paid to them.