Question

Ms. Yuki is an entrepreneur who owned HO Cleaning Services Enterprise (HOCSE). Ms. Yuki 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 Ms. Yuki 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 Ms. Yuki 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 Ms. Yuki used RM5,500 of HOCSE’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 HOCSE 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

Journal entries during Jan 2020

Date	Particulars	Debit $	Credit $
Jan-01	Cash	RM 50,000
	Furniture and fittings	RM 40,000
	Office equipment	RM 14,000
	Y's Capital account		RM 104,000
	[Assets contributed by CH recorded]
Jan-02	Office supplies	RM      600
	Cash		RM        600
	[Paid for office supplies]
Jan-06	NO entry
Jan-08	Insurance premium	RM      417
	Prepaid insurance premium	RM   2,083
	Cash		RM     2,500
	[Insurance for the month of Jan recorded]
Jan-11	Cash	RM 10,000
	Revenue from cleaning services		RM   10,000
	[Performed from cleaning services and received cash]
Jan-13	Van	RM 25,000
	Cash		RM   14,000
	Payable to vendor		RM   11,000
	[Purchased a Van partially for cash and partially on account]
Jan-16	Y's Capital account	RM   5,500
	Cash		RM     5,500
	[Withdrwan money for vacation]
Jan-17	Payable to vendor	RM   4,000
	Cash		RM     4,000
	[Payable for Van on acccount settled]
Jan-22	Utility expenses	RM   1,500
	Cash		RM     1,500
	[Paid for utility bills]
Jan-27	Cash	RM   7,000
	Accounts receivable	RM   8,000
	Revenue from cleaning services		RM   15,000
	[Performed cleaning services and received cash partially and part on account]
Jan-28	Cash	RM 10,000
	Unearned revenue		RM   10,000
	[Advance received for services to be performed in Feb]
Jan-30	Wages & Salary	RM   1,200
	Cash		RM     1,200
	[ hired part time worker to assist CH]

Cash Account
Particulars	Debit $	Particulars	Credit $
Y's Capital account	RM 104,000	Office supplies	RM         600
Revenue from cleaning services	RM   10,000	Insurance premium	RM         417
Revenue from cleaning services	RM     7,000	Prepaid insurance premium	RM     2,083
Unearned revenue	RM   10,000	Van	RM   14,000
		Y's Capital account	RM     5,500
		Payable to vendor	RM     4,000
		Utility expenses	RM     1,500
		Wages & Salary	RM     1,200
		Balance	RM 101,700
	RM 131,000		RM 131,000

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