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Episode 1:
Ahmed intends to start a business. He intends to open a factory to produce non-dairy ice creams
(AICE). He has a saving of $150,000 which he wants to use as capital for the business. He
wants to immediately record all his transactions and intend to complete all his records within
a week.
He then went on to purchase the necessary machines and equipment which he needs to pay
cash. The cost of the machines and equipment total to $120,000. Now, Ahmed has a dilemma.
He only has $150,000. Furthermore, he needs to pay a deposit rent of $30,000 for the factory,
as well as $10,000 for the utility deposits. So, he decided to borrow $100,000 from his father.
His father agreed to lend him the money, and made Ahmad promise to pay him return of 4%
every year and pay the money back within 5 years.
He has a saving of $150,000 which he wants to use as capital for the business.
Purchase the necessary machines and equipment which he needs to pay cash. The cost of the
machines and equipment total to $120,000.
Episode 2:
3. Purchased materials from Sen & Co. for production for $ 15,000. Received the goods from
Sen & Co but has not paid for the purchase.
8. Paid Insurance on 1st January 2020 for business shop lot $12,000 for the next 2 years.
9. Paid Johan salary $2,000 on 31st January and the balance to be paid at end of February.
14. The company tax is 25% of the Earnings Before Tax. The tax will only be paid in March.
1. Prepare the journal entries for Ahmad from the day he started the business and for the
whole month of January.
2. Enter the information from the journals into related ledger accounts.
3. Calculate the balance on each ledger accounts.
4. Prepare the trial balance.
5. Prepare the Income statement
6. Prepare the Balance Sheet.