Question 2

Hasmidah Trading, owned by Puan Hasmidah started its business on 1 July 2016. The following was extracted from transactions occurred in
the month of July 2016:

July Transactions Assets Liabilities Revenues Expenses Owner’s Double Entry

Equity DEBIT CREDIT
AED LRC
1 Puan Hasmidah contributed RM5,000 + Cash +Capital Cash Capital
cash and RM20,000 cheque into the RM5,000 RM25,000 RM5,000 RM25,000
business.
+ Bank Bank
RM20,000 RM20,000
2 Purchased goods on credit from Ah + Creditor + Purchase Purchase Creditor
Meng amounting to RM3,000. Ah Meng RM3,000 RM3,000 Ah Meng
RM3,000 RM3,000
4 Sold goods on credit to Abu + Debtor Abu + Sales Debtor Abu Sales
amounting RM1,500. RM1,500 RM1,500 RM1,500 RM1,500

5 Returned defective goods to Ah Meng - Creditor + Return Creditor Return

amounting to RM200. Ah Meng outwards Ah Meng outwards
RM200 RM200 RM200 RM200
6 Abu returned goods to the business - Debtor Abu + Return Return Debtor Abu
amounting RM500. RM500 inwards inwards RM500
RM500 RM500
8 Abu made full settlement by cash. - Debtor Abu Cash Debtor Abu
RM1,000 RM1,000 RM1,000

+ Cash
RM1,000
10 The business paid half of the amount - Bank - Creditor Creditor Bank
owed to Ah Meng by cheque. RM1,400 Ah Meng Ah Meng RM1,400
RM1,400 RM1,400
 12 The business purchased computer + Computer Computer Bank
amounting RM2,500 and paid by RM2,500 RM2,500 RM2,500
cheque.
- Bank
RM2,500
15 Made cash sales of RM500. + Cash + Sales Cash Sales
RM500 RM500 RM500 RM500

Prepare ledger entries for the above transactions in the form of “T” account. And balance off all the accounts and prepare trial balance.