TUTORIAL 2 PART 2: JOURNAL, LEDGER and TRIAL BALANCE

QUESTION 1:

Mr Kevin King commenced trading as a wholesale trader on 1 March 2020 with a capital of
RM30,000. He opened a bank account of RM29,000 and kept a cash account of RM1,000.

During March the following transactions took place:

2nd Paid RM1,000 for the first months rent on a small shop, paying by cheque.
2nd Bought shop fixtures and fittings by cheque from Shepherd Shop Fittings for
RM5,500
3rd Paid monthly business insurance to the local Insurance brokers paying by cheque -
RM300.
4th Purchased on credit goods to sell, from Hughes RM5,700
5th Purchased goods to sell, from Ferguson for RM7,500. Ferguson refused to give any
credit so Kevin had to pay by cheque.
9th Sold goods to Mr Mowbray to the value of RM10,000. Kevin allowed him 30 days to
pay.
11th A visit to the local stationers resulted in the purchase of many small items for the
office. These were paid for in cash to the value of RM350. These expenses are all to
be recorded under one miscellaneous office expenses account.
14th Sold goods to Mr Redknapp for RM1,000. He only dealt in cash and therefore asked
for a discount. Kevin allowed him a discount of RM20. The remaining RM980 was
immediately paid into the bank.
16th Sold goods to Mr Keane for RM6,000 on credit.
Sold goods to Mr Southgate for RM 5,000 who paid by cheque.
18th Mr Keane returned RM500 of the goods claiming they were faulty.
23rd Received a cheque from Mr Mowbray paying his account in full.
25th Sent cheque to Hughes to settle in full what was owed to him.
30th Purchased on credit further goods to sell, from Ince for RM2,000
31st Kevin decided to go on a last minute weekend holiday trip. He paid for the flight by
drawing a cheque on the business bank account for RM500.

REQUIRED:

(a) Record the above transactions into General Journal and “T” ledger accounts
(b) Balance off the ledger accounts
(c) Extract a trial balance at 31 March 2020.

1
 Mr Kelvin King
General Journal
Debit Credit
Date Particulars (RM) (RM)
202
0      
Mar-
01 Bank 29,000  
Cash 1,000  
Capital   30,000
(Being bank and cash are invested to star business) 30,000 30,000
     
2 Rental Expenses 1,000  
Bank   1,000
(Being paid rental expenses by cheque)    
     
2 Fixtures and Fitting 5,500  
Bank   5,500
(Being purchase fixture and fitting form Shepherd Shop Fitting
by cheque)    
     
3 Insurance Expenses 300  
Bank   300
(Being paid insurance expenses by cheque    
     
4 Purchases 5,700  
Account Payable - Hughes   5,700
(Being purchase good on credit)  
   
5 Purchase 7,500
Bank   7,500
(Being purchase good by cheque)  
   
9 Account Receivable - Mr Mowbray 10,000
Sales   10,000
(Being sale on credeit)  
   
11 Miscellaneous Office Expenses 350
Cash   350
(Being purchase of small item for office)  
   
14 Bank 980
Dicount Allowed 20
Sale   1,000

2
 (Being sale to Mr Redknapp and giving dicount allowed)  
   
16 Account Receivable - Mr Keane 6,000
Bank 5,000
Sales   11,000
(Being sold good to Mr Keane on credit) 11,000 11,000
(Being sold good to Mr Southgate on cheque)  
   
18 Return Inward 500
Account Receivable - Mr Keane   500
(Being good return from Mr Keane)  
   
23 Bank 10,000
Account Receivable - Mr Mowbray   10,000
(Being receive cheque from account receivable)  
   
25 Account Payable - Hughes 5,700
Bank   5,700
(Being send cheque to account payable)  
   
30 Purchases 2,000
Account Payable - Ince   2,000
(Being purchase good on credit)  
   
31 Drawing 500
Bank 500
(Being personal drawing from bank)  

3
Bank

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Capital 29,000 Mar Rental Expenses 1,000

-01 -02

14 Sales 980 2 Fixtures and Fttings 5,500

16 Sales 5,000 3 Insurance Expenses 300

23 Account Receivable - Mr 10,000 5 Purchases 7,500

Mowbray

25 Account Payable - Hughes 5,700

31 Drawing 500

31 Balance c/d 24,480

44,980 44,980

Apr- Balance b/d 24,480

01

Cash

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Capital 1,000 11 Miscellaneous Office 350

-01 Expenses

31 Balance c/d 650

4
 1,000   1,000

Apr- Balance b/d 650  

01

Capital

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Balance c/d 30,000 Mar Bank 29,000

-31 -01

  Cash 1,000

30,000   30,000

Apr- Balance b/d 30,000

01

Rental Expenses

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Bank 1,000 Mar Statement ofProfit and 1,000

-02 -31 Loss

1,000   1,000

5
Fixtures and Fittings

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Bank 5,500 Mar Balance c/d 5,500

-02 -31

5,500   5,500

Apr- Balance b/d 5,500  

01

Insurance Expense

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Bank 300 Mar Statement of Profit and 300

-03 -31 Loss

Purchases

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Account Payable - Hughes 5,700 Mar Statement of Profit and 15,200
-04 -31 Loss

5 Bank 7,500  

6
30 Account Payable - Ince 2,000  

15,200   15,200

Account Payable - Hughes

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Bank 5,700 Mar Purchases 5,700

-25 -04

Account Receivable - Mr Mowbray

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Sales 10,000 Mar Bank 10,000

-09 -23

Sales

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Statement of Profit and 22,000 Mar Account Receivable - Mr 10,000

-31 Loss -09 Mowbray

14 Bank 980

7
   Discount Allowed 20

16 Account Receivable - Mr 6,000

Keane

  Bank 5,000

22,000   22,000

Miscellaneous Office Expenses

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Cash 350 Mar Statement of Profit and 350

-11 -31 Loss

Discount Allowed

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Sales 20 Mar Statement of Profit and 20

-14 -31 Loss

Account Receivable - Keane

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Sales 6,000 Mar Return Inward 500

8
-16 -18

31 Balance c/d 5,500

6,000   6,000

Apr- Balance b/d 5,500  

01

Return Inward

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Account Receivable - Mr 500 Mar Statement of Profit and 500

-18 Keane -31 Loss

500   500

Account Payable - Ince

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Balance c/d 2,000 Mar Purchases 2,000

-31 -30

2,000   2,000

9
  

Apr- Balance b/d 2,000

01

Drawing

Dat Debit Dat Credit

e (RM) e (RM)

202 202
0 0

Mar Bank 500 Mar Balance c/d 500

-31 -31

500   500

Apr- Balance b/d 500  

01

Mr Kelvin King
Trial Balance as at 31 March 2020
Date Particulars Debit (RM) Credit (RM)
Bank 24,480  
Cash 650  
Rental Expenses 1,000  
Fixtures and Fittings 5,500  
Insurances Expenses 300  
Purchases 15,200  
Miscellaneous Office Expenses 350  
Discount Allowed 20  
Account Receivable -Mr Keane 5,500  
Return Inward 500  
Drawing 500  
Capital   30,000

10
 Sales   22,000
Account Payable -Ince   2,000
     
  54,000 54,000
     

11
QUESTION 2:

Mr Mann began trading as Watchman on 1 November 2019 with capital of RM50,000, with
which he opened a bank account of RM35,000 and held cash totalling RM15,000. His trade
is selling specialist and scientific time-keeping equipment in Cyberjaya. During November
2019 the following transactions took place:

2nd Paid RM11,000 by cheque to buy a warehouse

4th Purchased for RM18,000 a selection of high quality timing equipment to be sold on to
customers, paying by cheque
5th Sold some of the equipment that he had bought to HitGirl Ltd for RM4,000 for cash.
5th Spent RM200 in cash on delivery costs to deliver the equipment sold to HitGirl Ltd, as
that was the only way to achieve the sale.
6th Banked RM3,500 of the business’s cash
8th Sold equipment on credit to Red Mist Trading for RM3,000.
9th Sold some equipment to Silk Spectre & Co on credit for RM9,000.
10th Purchased on credit some more equipment for selling on, from Moonstar Supplies for
RM3,000.
12th Returned RM900 of faulty equipment to Moonstar Supplies.
14th Silk Spectre & Co paid off half of the amount owed to Watchman by cheque
16th Mr Mann wrote a cheque from the business bank account for RM1,000, to pay a
deposit for a holiday for himself and his family.
21th Mr Mann paid an assistant, Mr Rorschach, RM2,200 cash as wages for November.

Required:

(a) Record the above transactions into General Journal and “T” ledger accounts.

(b) Balance off the ledger accounts and extract a trial balance at 30 November 2019.

12
 Watchman
General Journal
Debit Credit
Date Particulars (RM) (RM)
2019      
Nov-
01 Bank 35,000  
Cash 15,000  
Capital   50,000
  50,000 50,000
     
2 Land and Building 11,000  
Bank   11,000
     
4 Purchases 18,000  
Bank   18,000
     
5 Cash 4,000  
Sales   4,000
     
5 Carriage Outward 200  
Cash   200
     
6 Bank 3,500
Cash   3,500
   
8 Account Receivable - Red Mist Trading 3,000
Sales   3,000
   
9 Account Receivable - Silk Spectre & Co 9,000
Sales   9,000
   
10 Purchases 3,000
Account Payable - Moonstar Supplies   3,000
   
12 Account Payab;e - Moonstar Supplies 900
Return Outward   900
   
14 Bank 4,500
Account Receivable - Silk Spectre & Co   4,500
   
16 Drawings 1,000
Bank   1,000
   

13
 21 Wages Expenses 2,200
Cash   2,200

Watchamn
Bank
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov 35,00 Nov 11,00
-01 Capital 0 -02 Land and Building 0
18,00
6 Cash 3,500 4 Purchases 0
Account Receivable - Silk
14 Spectre & Co 4,500 16 Drawings 1,000
13,00
30 Balance c/d 0
 
 
43,00 43,00
0   0
 
Dec- 13,00
01 Balance b/d 0
 

Cash
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov 15,00 Nov
-01 Capital 0 -05 Carriage Outward 200
5 Sales 4,000 6 Bank 3,500
21 Wages Expenses 2,200
13,10
30 Balance c/d 0
19,00 19,00
0   0
 
Dec- 13,10
01 Balance b/d 0  
 

Capital

14
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov 50,00 Nov 35,00
-30 Balance c/d 0 -01 Bank 0
15,00
  Cash 0
 
50,00 50,00
0   0
 
Dec- 50,00
01 Balance b/d 0
 

Land and Building

Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov 11,00 Nov 11,00
-02 Bank 0 -30 Balance c/d 0
 
11,00 11,00
0   0
 
Dec- 11,00
01 Balance b/d 0  
 

Purchases
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov 18,00 Nov Statement of Profit and 21,00
-04 Bank 0 -30 Loss 0
Account Payable -
10 Moonstar Supplies 3,000  
 
21,00 21,00
0   0
 

Sales

15
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Statement of Profit and 16,00 Nov
-30 Loss 0 -05 Cash 4,000
Account Receivable - Red
8 Mist Trading 3,000
Account Receivable - Silk
9 Spectre & Co 9,000
 
16,00 16,00
0   0
 

Carriage Outward
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Nov Statement of Profit and
-05 Cash 200 -30 Loss 200
 

Account Receivable - Red Mist Trading

Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Nov
-08 Sales 3,000 -30 Balance c/d 3,000
 
3,000   3,000
 
Dec-
01 Balance b/d 3,000  
 

Account Receivable - Silk Spectre & Co

Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Nov
-09 Sales 9,000 -14 Bank 4,500
30 Balance c/d 4,500

16
  
9,000   9,000
 
Dec-
01 Balance b/d 4,500  
 

Account Payable - Moonstar Supplies

Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Nov
-12 Return Outward 900 -10 Purchases 3,000
30 Balance c/d 2,100  
 
3,000   3,000
 
Dec-
01 Balance b/d 2,100
 

Return Ouyward
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Statement of Profit and Nov Account Payable -
-30 Loss 900 -12 Moonstar Supplies 900
 

Drawing
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Nov
-16 Bank 1,000 -30 Balance c/d 1,000
 
1,000   1,000
 
Dec-
01 Balance b/d 1,000  
 

17
 Wages Expenses
Dat Debit Dat Credit
e (RM) e (RM)
201 201
9 9
Nov Nov Statement of Profit and
-21 Cash 2,200 -30 Loss 2,200
 

Watchman
Trial Balance as at 30 November 2019
Date Particulars Debit Credit
Bank 13,000  
Cash 13,100  
Land and Building 11,000  
Account Receivable -Red Mist Trading 3,000  
Account Receivable - Silk Spectre & Co 4,500  
Drawing 1,000  
Purchases 21,000  
Carriage Outward 200  
Wages Expenses 2,200  
Capital   50,000
Sales   16,000
Account Payable - Moonstar Supplies   2,100
Return Outward   900
     
  69,000 69,000
     

18