1.

0 INTRODUCTION
This time, the assignment required us to create our own business that complies with the
accounting standards. So, the business that needs to be created must follow the recording
process in the accounting cycle. This process is essential in the accounting system of a
business because it is a process to identify each business transaction and financial in and out
of the business and finally summarize these transactions in monetary units.

So, we as a group chose to create a sole proprietorship business. This business is a

small boutique that sells clothes and accessories. The main reason a group of us chose to
create a sole proprietorship business is because sole proprietorship business is easier for
business-related decision-making even though it is more risky and can bring problems
because any profit or loss has to be borne by the business owner but the profit obtained is
higher and sole proprietorship business is easier to establish and register under SSM.

This business is named Daily Outfit Style by IZSS Bundle. For this business, we
agree to sell a variety of jersey shirts, baggy shirts, and some very suitable hand accessories
according to the tastes of young people, especially among university students. This small
bundle stall is located in Rafflesia Cellarium where we rented a space to start our boutique
operation.
Abu has just opened a small boutique business of his own which is named Daily Outfit Style
by IZSS Bundle and started operating on 1st December 2023. He started the business
operation with cash in hand amounting to RM4,000.00, cash in the bank amounting to
RM8,000.00, and also using a van worth RM30,000.00 to facilitate business affairs. The
following are all transactions recorded and prepared by Abu that ended on 29 th December
2023:

Decembe Transactions
r
1 Purchased a business license for RM250.00 in cash. Made a deposit and
rented a lot at a Rafflesia Cellarium amounted to RM2000 and RM1000 by a
business cheque.
2 Requested a loan from SmartBank for RM10,000. Then bought a laptop worth
RM3400 for business use from Gadget Pro Sdn Bhd with a cheque.
3 Brought in furniture worth RM2500 in cash.
4 Received an invoice for purchased 200 pieces of jersey shirt made worth
RM4600 from Printing Outfit Club with credit term 2/15, net 25.
5 A few defective jersey shirts amounting to RM200 were returned to the
Printing Outfit Club.
6 Issued an invoice to Aliya’s Shop for purchased 30 pieces of necklace
amounting to RM1800 with a credit term 2/10, net 30.
7 Made cash sales of 25 pieces of jersey shirts amounted to RM1000.
8 Received a debit note from Aliya’s Shop for the defective 5 pieces of
necklace worth RM300.
9 Purchased 60 pieces of baggy shirts that cost RM1200 from Adi Bundle
Enterprise with credit term 2/10, net 25.
10 Aliya’s Shop made a full settlement for its account on 6 December 2023 by
cheque.
11 Received a loan approval from SmartBank amounting to RM10,000 via
request from 2 December 2023 and purchased 25 pieces of baggy jeans worth
RM1000 in cash.
12 Made cash sales of 10 baggy jeans amounting to RM400. Requested a loan
from Segi Bank for RM15,000.
14 Issued an invoice to Piqa Enterprise for the purchased 40 pieces of jersey
shirts worth RM1200 with a credit term 3/10, net 25.
15 Made a full settlement to Adi Bundle Enterprise by a business cheque on 9
December 2023. Abu later purchased 50 pieces of baggy shirts from the Siti
Collection worth RM1000 on credit.
16 Made an advertisement to promote the boutique’s products worth RM220 by
cheque.
17 Made a full settlement to Printing Outfit Club by cheque.
18 Purchased 20 pieces of baggy shirts amounted to RM400 via cash.
19 Issued an invoice for the purchase of 15 pieces of baggy shirts worth RM390
to Maria Style with a credit term of 2/8, net 25.
21 Received a cheque from Maria Style for settlement on 19 December.
Received a loan from Segi Bank amounting to RM15,000 via request on 12
December 2023.
24 Paid salary to general workers and manager amounting to RM4500 by online
banking.
25 Issued an invoice for the purchase of 20 pieces of baggy jeans worth RM800
to Abdul Empire with a credit term of 2/15, net 25.
26 Received a vehicle rental of 1200 by cheque.
28 Received a commission of RM300 via online banking for helping a friend
settle her business account.
29 Took RM130 from the business bank account and goods worth RM130 for
personal use.
3.0 JOURNAL ENTRY

General Journal

Date Particular Folio Debit Credit

2023 RM RM
December 1 Cash in-hand 4,000
Cash in-bank 8,000
Vehicle - Van 30,000
Capital 42,000
(Begins the business on 1st Dec
2023 with Capital worth RM41,870)
2 Laptop 3,400
Gadget Pro Sdn Bhd 3,400
3 Furniture 2,500
Capital 2,500
29 Drawing 130
Purchases 130

Sales Journal

Date Particular Folio Document Total

2023 RM
December 6 Aliya’s Shop 1,470
14 Piqa Enterprise 1,200
19 Maria Style 382.20
25 Abdul Empire 800
31 Sales Account 3,852.20
 Purchases Journal

Date Particular Folio Document Total

2023 RM
December 4 Printing Outfit Club 4,600
9 Adi Bundle Enterprise 1,200
15 Siti Collection 1,000
31 Purchase Account 6,800

Returns inward Journal

Date Particular Folio Document Total

2023 RM
December 8 Aliya’s Shop 300
31 Returns inward Account 300

Returns outward Journal

Date Particular Folio Document Total

2023 RM
December 5 Printing Outfit Club 200
31 Returns outward Account 200
4.0 LEDGERS ENTRY

Bank Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 1 Capital 8,000 8,000
Rent deposit 2,000 6,000
Rent 1,000 5,000
2 Office equipment 3,400 1,600
10 Accounts Receivable: Aliya’s Shop 1,464 3,064
11 Loan from SmartBank 10,000 13,064
15 Accounts Payable: Adi Bundle 1,176 11,888
Enterprise
16 Advertisement 220 11,668
17 Accounts Payable: Printing Outfit 4,312 7,356
Club
21 Accounts Receivable: Maria Style 382.20 7,738.20
Loan from Segi Bank 15,000 22,738.20
24 Salary 4,500 18,238.20
26 Rental Received 1,200 19,438.20
28 Commission Received 300 19,738.20
 Cash Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 1 Capital 4,000 4,000
Business License 250 3,750
3 Furniture 2,500 1,250
7 Sales 1,000 2,250
11 Purchase 1,000 1,250
12 Sales 400 1,650
18 Purchase 400 1,250
29 Drawing 130 1,120

Purchase Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 4 Accounts Payable: Printing Outfit 4,600 4,600
Club
9 Accounts Payable: Adi Bundle 1,200 5,800
Enterprise
11 Cash 1,000 6,800
15 Accounts Payable: Siti Collection 1,000 7,800
18 Cash 400 8,200
29 Drawing 130 8,070
 Sales Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 6 Accounts Receivable: Aliya’s Shop 1,800 1,800
7 Cash 1,000 2,800
12 Cash 400 3,200
14 Accounts Receivable: Piqa 1,200 4,400
Enterprise
19 Accounts Receivable: Maria Style 390 4,790
25 Accounts Receivable: Abdul 800 5,590
Empire

Returns Inward Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 8 Accounts Receivable: Aliya’s Shop 300 300

Returns Outward Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 5 Accounts Payable: Printing Outfit 200 200
Club

Furniture Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 3 Cash 2,500 2,500
 Loan from SmartBank

Date Particular Debit Credit Balance

2023 RM RM RM
December Bank 10,000 10,000
11

Office Equipment Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 2 Bank 3,400 3,400

Loan from Segi Bank

Date Particular Debit Credit Balance

2023 RM RM RM
December Bank 15,000 15,000
21

Accounts Receivable: Aliya’s Shop

Date Particular Debit Credit Balance

2023 RM RM RM
December 6 Sales 1,800 1,800
8 Returns Inward 300 1,500
10 Discount Allowed 36 1,464
Bank 1,464 0
 Accounts Receivable: Piqa Enterprise

Date Particular Debit Credit Balance

2023 RM RM RM
December Sales 1,200 1,200
14

Accounts Receivable: Maria Style

Date Particular Debit Credit Balance

2023 RM RM RM
December Sales 390 390
19
21 Discount Allowed 7.80 382.20
Bank 382.20 0

Accounts Receivable: Abdul Empire

Date Particular Debit Credit Balance

2023 RM RM RM
December Sales 800 800
25

Accounts Payable: Printing Outfit Club

Date Particular Debit Credit Balance

2023 RM RM RM
December 4 Purchases 4,600 4,600
5 Returns Outward 200 4,400
15 Discount Received 88 4,312
Bank 4,312 0
 Accounts Payable: Adi Bundle Enterprise

Date Particular Debit Credit Balance

2023 RM RM M
December 9 Purchases 1,200 1,200
17 Discount Received 24 1,176
Bank 1,176 0

Account Payable: Siti Collection

Date Particular Debit Credit Balance

2023 RM RM RM
December Purchases 1,000 1,000
15

Vehicle Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 1 Capital 30,000 30,000

Capital Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 1 Cash 4,000 4,000
Bank 8,000 12,000
Vehicle 30,000 42,000
 Drawing Account

Date Particular Debit Credit Balance

2023 RM RMR M
December Cash 130 130
29
Purchases 130 260

Advertisement Account

Date Particular Debit Credit Balance

2023 RM RM RM
December Bank 220 220
16

Salary Account

Date Particular Debit Credit Balance

2023 RM RM RM
December Bank 4,500 4,500
26

Discount Allowed

Date Particular Debit Credit Balance

2023 RM RM RM
December Account Receivable: Aliya’s Shop 36 36
10
21 Account Receivable: Maria Style 7.80 43.8
 Discount Received

Date Particular Debit Credit Balance

2023 RM RM RM
December Accounts Payable: Adi Bundle 24 24
15 Enterprise
17 Accounts Payable: Printing Outfit 88 112
Club

Deposit Rental Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 1 Bank 2,000 2,000

Rental Account

Date Particular Debit Credit Balance

2023 RM RM RM
December 1 Bank 1,000 1,000

Rental Received Account

Date Particular Debit Credit Balance

2023
December Bank 1,200 1,200
26

Commission Account

Date Particular Debit Credit Balance

2023 RM RM RM
December Bank 300 300
 28

Daily Outfit Style by IZSS Bundle

Trial Balance on 31 December 2023

Particular RM RM
Bank 19,738.20
Cash 1,120
Capital 42,000
Furniture 2,500
Van Vehicle 30,000
Office Equipment 3,400
Purchase 8,070
Sales 5,590
Returns Outward 200
Returns Inward 300
Accounts Receivable: Piqa Enterprise 1,200
Accounts Receivable: Abdul Empire 800
Accounts Payable: Siti Collection 1,000
Loan from SmartBank 10,000
Loan from Segi Bank 15,000
Business License 250
Drawing 260
Advertisement 220
Salary 4,500
Discount Allowed 43.80
Discount Received 112
Deposit 2,000
Rent 1,000
Rental Received (Van Rental) 1,200
Commission Received 300
Total 75,402 75,402