TUTORIAL 2 PART 1: THE RECORDING PROCESS

QUESTION 3

a) Transactions for the month of July 2019 for Rappiah Trading are as follows:
July 1 Started business with RM50,000 cash and a motor vehicle valued at RM80,000.
2 Opened a bank account at MAYBANK and deposited RM30,000 cash.
4 Purchased goods for RM1,500 by cash from Sendayu Tinggi.
6 Sold goods on credit RM3,500 to Pandelela Trading.
7 Purchased goods on credit RM3,000 from Saravanan.
1 Credit sales RM4,000 to Shamil.
4 Bought machinery RM30,000 from Selva and paid only half of the amount by
1 cheque.
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2 Send cheque for RM2,950 to Saravanan being full settlement of amount owed to
0 him.
2 Received cash from Pandelela Trading for all the amount due, less 10% of cash
3 discount.
2 Shamil returned defective goods amounting to RM200.
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2 Paid to staff salary by cheque amounting to RM2,600.
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Required:
Journalize the above transactions in General Journal form. Explanations are not required.

Rappiah Trading
General Journal
Date Particulars Debit (RM) Credit (RM)
2019      
Jul-
01 Cash 50,000  
Motor Vehicle 80,000  
Capital   130,000
  130,000 130,000
     
2 Bank 30,000  
Cash   30,000
     
4 Purchases 1,500  
Cash   1,500
     
6 Account Receivable - Pandalela Trading 3,500  

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 Sales   3,500
     
7 Purchases 3,000  
Account Payable - Saravanan   3,000
     
14 Account Receivable - Shamil 4,000
  Sales   4,000
   
18 Machinery 30,000
  Bank   15,000
  Account Payable - Selva   15,000
  30,000 30,000
   
20 Account Payable - Saravanan 3,000
  Discount Received   50
  Bank   2,950
  3,000 3,000
   
23 Cash 3,150
  Discount Allowed 350
  Account Receivable   3,500
  3,500 3,500
   
25 Return Inward 200
Account Receivable - Shamil   200
   
28 Satff Salary 2,600
Bank   2,600
   

QUESTION 4
Mak Cun Enterprise is owned by Madam Mekcun. The following transactions occurred in the
first month of her honey business operation.

Date Transactions
May 1 Invested RM15,000 cash to start the business.
May 3 Hired a secretary at salary of RM50 per day for five days working per week,
payable at the end of month.
May 6 Paid cash for Asus Computer, RM3,500. The computer is expected to remain in
service for five years.
May 10 Purchase office supplies on account, RM700.
May 14 Sold 2 dozens of honey in bottle worth RM125 per bottle and received cash in full

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 amount.
May 15 Return half of the value of the office supplies purchased on 10 May.
May 19 Paid utility expenses, RM200.
May 22 Withdrew RM50 cash for personal use.
May 27 Received cheque in full settlement of the account from Pharmaceutical company,
RM2,000.
May 31 Paid secretary’s salary in full for the month of May.

Required: Journalize all the transactions into General Journal Form. Explanations are not
required.

Mak Cun Enterprise

General Journal
Date Particulars Debit Credit
2019      
May- 15,00
01 Cash 0  
15,00
Capital   0
     
6 Equipment 3,500  
Cash   3,500
     
10 Office Supplies 700  
Account Payable   700
     
14 Cash 3,000  
Sales   3,000
     
15 Account Payable 350  
Office Supplies   350
     
19 Utility Expenses 200  
Cash   200
   
22 Drawings 50
Cash   50
   
27 Bank 2,000
Account Receivable - Pharmaceutical Company   2,000
   
31 Salary 1,000

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 Cash   1,000
   
QUESTION 5
Leena Fiona is a licensed accountant. During the first month of operations of her business,
FIONA Berhad, the following events and transactions occurred.

Date Transactions
July 1 Shareholders invested RM20,000 cash in exchange for ordinary shares
2 Hires a secretary at a salary of RM2,000 per month
3 Purchased RM1,500 of office furniture on account from Harris Berhad.
7 Paid office rent of RM900 cash for the month
11 Completed a tax assignment and billed client RM2,800 for services performed.
12 Received loan RM50,000 from CIMB.
17 Received cash of RM1,200 for services performed for Luise Company.
31 Paid secretary RM2,000 salary for the month
31 Paid 40% of the balance due Harris Berhad

Required:
Journalize all the transactions into General Journal Form. Explanations are not required.

Fiona Berhad
General Journal
Date Particulars Debit Credit
2019      
Jul-01 Cash 20,000  
Capital   20,000
     
3 Office Furniture 1,500  
Account Payable - Harris Berhad   1,500
     
7 Rental 900  
Cash   900
     
11 Account Receivable 2,800  
Sales   2,800
     
12 Bank 50,000  
Loan from CIMB   50,000
     
17 Cash 1,200  
Account Receivable - Luise Company   1,200
   
31 Salary 2,000

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 Account Payable - Harris Berhad 600
Cash   2,600
  2,600 2,600
   

QUESTION 6

Ms. Jehan decides to open trading business, called Muhibbah Enterprise. On 1 April, she
invested cash of RM40,000 into her business.
April:
4 Bought a few sets of office equipment by cash at the price of RM4,500.
5 Bought stationaries from Harazz Bhd. worth RM600 by cash.
7 Sold goods to Benjamin and received cheque, RM2,800
1 Sold goods on credit RM3,500 to Rajan.
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2 Cash purchase from LinDan RM1,300.
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2 Received the sum of RM1,100 from Rajan, customer.
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Required:
1. Record the above transactions into ledger: Cash Account.
2. Balance-off the cash account.
Muhibbah Enterprise
Cash
Date Particular RM Date Particular RM
2019 2019
40,00 Apr-
Apr-01 Capital 0 04 Office Equipment 4,500
5 Stationery 600
29 Account Receivable - Rajan 1,100 26 Purchase 1,300
34,70
30 Balance c/d 0
 
41,10 41,10
0   0
 
May- 37,50
01 Balance b/d 0  

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QUESTION 7

Michell Lee Trading has been in the business for more than 5 years. The following transactions
for the month of January 2019 are as follows:
1 Balance as per cashbook: Bank RM4,900 and Cash RM8,500.
3 Bought goods on credit from Ali Bhd, RM3,500.
8 Cash sales, RM2,350.
11 Received a cheque for RM2,500 from Jasmine to settle an invoice of RM2,700.
14 Bought a computer RM4,100 by cheque for office use.
17 Paid personal insurance of RM320.
18 Sold goods on credit to Siva, RM600.
20 Paid for RM1,600 to Cristine after deducting 5% discount.
21 Transferred cash from office to bank, RM5,500.
25 Purchases made by cheque amounting to RM600.
26 Paid Benjamin Trading a cheque of RM950 after deduction of RM30 cash
discount.
27 Michell Lee introduced further capital of RM6,300.
28 Interest on fixed deposit from CIMB Bank, RM2,700.
30 Received cash of RM1,000 from Maria as a loan.

Required:
1) Record the above transactions into ledger:
a) Cash Account.
b) Bank Account
2) Balance-off the cash account and bank account.

Michell Lee Trading

Cash
Date RM Date RM
201 201
9 9
Jan- Jan-
01 Balance b/d 8,500 17 Drawing 320
8 Sales 2,350 20 Account Payable - Cristine 1,600
30 Loan from Maria 1,000 21 Bank 5,500
27 Capital 6,300 31 Balance c/d 10,730
 
18,150   18,150
 
Feb-
01 Balance b/d 10,730  

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 Bank
Date RM Date RM
201 201
9 9
Jan- Jan-
01 Balance b/d 4,900 14 Computer 4,100
Account Receivable -
11 Jasmine 2,500 25 Purchases 600
Account Payable - Benjamin
21 Cash 5,500 26 Trading 950
28 Interest on ficed deposit 2,700 31 Balance c/d 9,950
 
15,600   15,600
 
Feb-
01 Balance b/d 9,950  

QUESTION 8
The accounts in the ledger of HALIM BERHAD contain the following balances on September, 30,
2019.

RM RM
Account receivable 10,642 Insurance expense 1,968
Account payable 8,396 Maintenance expense 961
Cash x Service revenue 10,610
Equipment 49,360 Dividends 700
Advertising expense 758 Share capital 40,000
Utilities expense 523 Salary expense 4,428
Note payable 26,450 Salary payable 815
Retained earnings 4,636

Required:
Prepare a trial balance and fill in the missing amount for cash.

Halim Berhad
Trial Balance
Date Particulars Debit (RM) Credit (RM)
2019      
Sep-30 Equipment 49,360  
Account Receivable 10,642  

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 Cash 21,567  
Advertising expense 758  
Utilities expense 523  
Insurance expense 1,968  
Maintenance expense 961  
Salary expense 4,428  
Dividend 700  
Account payable   8,396
Note payable   26,450
Service revenue   10,610
Share capital   40,000
Salary payable   815
Retained earning   4,636
     
  90,907 90,907
     

QUESTION 9

As at 31 December 2019 , Kamal Trading has the following balances on its ledger accounts:
Accounts Balance (RM)
Overdraft bank 12,000
Cash at bank 11,700
Capital 13,000
Insurance 1,880
Account payable 11,200
Purchases 12,400
Sales 14,600
Electricity payable 1,620
Account receivable 12,000
Loan interest 1,400
Wages 11,020
Vehicles 2,020

During 31 December 2019, the business made the following transactions:

a) Bought goods for RM1,000, half for cash and half on credit.
b) Made RM1,040 sales, RM800 of which was for credit.
c) Paid wages to shop assistants of RM260 in cash.

Required:
Prepare a trial balance as at 31 December 2019.

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 Kamal Trading
Trial Balance
Date Particulars Debit (RM) Credit (RM)
2019      
Dec-31 Bank 11,180  
Insurance 1,880  
Purchases 13,400  
Account receivable 12,800  
Loan interest 1,400  
Wages 11,280  
Vehicle 2,020  
Bank overdraft   12,000
Capital   13,000
Account payable   11,700
Sales   15,640
Electricity payable   1,620
     
  53,960 53,960
     

QUESTION 10

The trial balance of Scarlatti Corporation does not balance.

Scarlatti Corporation
Trial balance as at 30 April 2019
RM RM
Cash 5,912
Account receivable 5,240
Supplies 2,967
Equipment 6,100
Account payable 7,044
Share capital- Ordinary 8,000
Retained earnings 2,000
Service revenue 5,200
Office expense 4,320
24,539 22,244

An examination of the ledger shows these errors:

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 a) Cash received from a customer on account was recorded (both debit and credit) as
RM1,580 instead of RM1,850.
b) The purchase on account of a computer costing RM1,900 was recorded as a debit to
office expense and a credit to account payable.
c) Services were performed on account for a client, RM2,250 , for which account
receivable was debited RM2,250 and service revenue was credited RM225
d) A payment of RM95 for telephone charges was entered as a debit to office expense
and a debit to cash.
e) The service revenue account was totaled at RM5,200 instead of RM5,280.

Required:
Prepare a correct trial balance

Scarlatti Corporation
Trial Balance
Date Particulars Debit (RM) Credit (RM)
Cash 5,992  
Account receivable 4,970  
Supplies 2,967  
Equipment 8,000  
Office expense 2,420  
Account payable   7,044
Share capital- Ordinary   8,000
Retained earnings   2,000
Service revenue   7,305
     
  74,349 74,349
     

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