Question

In: Accounting

Sani, a graduate from Universiti Putra Malaysia, started the Merchandise Company with RM50,000 cash on January...

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.

Solutions

Expert Solution

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.


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