Perenggan 1

Kathy formed a landscape service business as a part time job during semester
break. To start the business on 1 st May 2020, she deposited RM1,000 in a new bank
account in the name of the business. The RM1,000 consisted of a RM600 financing
from Bank Amanah to her company, Kathy Landscape Service, and RM400 of her
own money.

date Account and explaination Debit credit

1 may 2020 cash 1000
Account payable 600
Capital, kathy 400

The company issued RM400 of capital to Kathy. Kathy rented lawn equipment,
purchased supplies, and hired other students to mow and trim customers’ lawns.

date Account and explaination Debit credit

1 may 2020 cash 1000
Account payable 600
Capital, kathy 400
date Account and explaination Debit credit
1 may 2020 expenses 400
cash 400

Perenggan 2

At 31st August, the business’s checkbook shows a balance of RM2,000, and

customers still owe RM750
date Account and explaination Debit credit
31 ogos 2020 cash 1250
Account receivable 750
revenue 2000

During the semester break, the business collected RM5,500 from customers.
date Account and explaination Debit credit
31 ogos 2020 cash 5500
revenue 5500

The business checkbook lists payments for supplies totalling RM400, and it still has
gasoline, weed trimmer cord, and other supplies that cost a total of RM50.
date Account and explaination Debit credit
 31 ogos 2020 Office supply 400
cash 400
After adjusted
Supply expense 350
Office supply 350

The business paid employees RM1,800 and still owes them RM300 for the final
week of the semester break.

date Account and explaination Debit credit

31 ogos 2020 Salleries expense 1800
cash 1800
After adjusted
Salleries expense 300
Salleries payable 300

Kathy rented some equipment from Laman Machine Shop. On 1 st May, the business
signed a six-month rental agreement on mowers and paid RM600 for the full rental
period in advance. Laman Machine Shop will refund the unused portion of the
prepayment if the equipment is returned in good shape. In order to get the refund,
Kathy has kept the mowers in excellent condition.
date Account and explaination Debit credit
31 ogos 2020 Prepaid rent 600
cash 600
After adjusted
Rent expence 400
Prepaid rent 400

In fact, the business had to pay RM300 to repair a mower.

date Account and explaination Debit credit

31 ogos 2020 Repair expense 300
cash 300

To transport employees and equipment to jobs, Kathy used a used van that the
business bought for RM300 from her brother. The business estimates that the
semester break’s work used up one-third of the van’s service potential.
date Account and explaination Debit credit
31 ogos 2020 transport 300
cash 300
After adjusted
depriciation expence - transport 100
Accumulated depreciation - transport 100
checkbook lists a payment of RM500 for cash withdrawals during the break. The
business paid the financing back during August.
date Account and explaination Debit credit
31 ogos 2020 Kathy, withdrawals 500
cash 500