In: Accounting
Sani, a graduate from Universiti Putra Malaysia, started the Merchandise Company with RM50,000 cash on January 2019. Below are the one month transactions of his company.
1/1 Bought goods from A & Co. for RM10,000 cash.
2/1 Bought Goods for Cash 5,000
3/1 Bought Goods from B & Co. for cash 6,000
4/1 Purchased Goods from C & Co. on credit 8,000
4/1 Brought in RM60,000 Cash to business
5/1 Sold goods worth 8,000 to P
5/1 Bought furniture from Modern Furniture for 10,000
5/1 Purchased goods for cash 15,000
6/1 Purchased goods from B. Sen & Co for 30,000
6/1 Opened a bank account by depositing 16,000
6/1 Sold goods to Zahir Khan for 10,000
6/1 Bought machinery for 6,000 and payment made by cheque
6/1 Payment to B.Sen & Co by cheque 5,000
6/1 Interest paid through cheque 2,000
6/1 Sold goods for cash 10,000
7/1 Cash sales for 6,000
7/1 Sold goods to Q for cash 4,000
8/1 Sold goods to R on credit 8,000
10/1 Returned goods to A & Co. 2,000
15/1 Goods returned from P 1,000
15/1 Goods returned by Zahir Khan for 2,000
15/1 Withdrew from bank for personal use 3,000
18/1 Goods taken by the proprietor for personal use 1,000
19/1 Withdrew from bank for office expenses 10,000
20/1 Cheque received from Zahir Khan 5,000
20/1 Commission received by cheque 5,000
20/1 Bought furniture 10,000
25/1 Purchased machinery for cash 25,000
26/1 Bought computer from Intel & Co. 30,000
27/1 Cash sales 5,000
29/1 Cash purchases 6,000
30/1 Paid electricity bill for 100
31/1 Paid Salaries by Cheque RM7,000
31/1 Closing Stocks is valued using FIFO method worth RM30,000
Required:
1. Prepare journal entries for the above transactions.
2. Prepare the trial balance.
1.
2.
Trial Balance | |||
As on 31st January 2019 | |||
Particulars | Total Amount in RM | Debit | Credit |
Bank Account | (3,000) | 3,000 | |
Capital Account | (110,000) | 110,000 | |
Cash Account | 39,900 | 39,900 | |
Commission Received Account | (5,000) | 5,000 | |
Computer Account | 30,000 | 30,000 | |
Debtor Account (P) | 7,000 | 7,000 | |
Debtor Account (R) | 8,000 | 8,000 | |
Debtor Account (Zahir Khan) | 3,000 | 3,000 | |
Drawings Account | 4,000 | 4,000 | |
Electricity Expenses Account | 100 | 100 | |
Employee Benefits Account | 7,000 | 7,000 | |
Furniture Account | 20,000 | 20,000 | |
Interest Expenses Account | 2,000 | 2,000 | |
Inventory Account | (1,000) | 1,000 | |
Machinery Account | 31,000 | 31,000 | |
Office Expenses Account | 10,000 | 10,000 | |
Purchase Account | 80,000 | 80,000 | |
Purchase Return Account | (2,000) | 2,000 | |
Sales Account | (51,000) | 51,000 | |
Sales Return Account | 3,000 | 3,000 | |
Supplier Account (B. Sen & Co.) | (25,000) | 25,000 | |
Supplier Account (C & Co.) | (8,000) | 8,000 | |
Supplier Account (Intel & Co.) | (30,000) | 30,000 | |
Supplier Account (Modern Furniture) | (10,000) | 10,000 | |
Total | - | 245,000 | 245,000 |
Note: Closing Stock shall be disclosed as RM 30000 in Trial Balance.